Choosing Your
Debt Settlement Company
Debt settlement can potentially be one of the fastest and least expensive bankruptcy alternatives, but people do not always understand the process, let alone which debt settlement company to choose. Many consumers confuse debt settlement with other debt relief options like consumer credit counseling, debt management, and debt consolidation. Before choosing a debt settlement company, it is important to understand how debt settlement may be able to settle your debt.
But once you understand the process, how do you choose the right debt settlement company?
If you think you qualify for debt settlement and you are ready to think about which debt settlement company to work with, here are a few points to consider:
1. Choose a debt settlement company that will put their guarantees in writing.
How valuable is a guarantee if your debt settlement company won't put it in writing? Here at Debt Shield, we are ready to hold ourselves accountable for the work we provide. We have a Term Guarantee and a Customer Service Guarantee in writing and on our website so that potential clients see the promises we make.
2. Choose a debt settlement company that will explain their settlement rate projections.
As each client's situation is different, and debt settlement involves negotiations with uncertain outcomes, debt settlement companies provide “projections” to clients. Your projected settlement rate should be originally calculated to reflect each of your accounts with each of your creditors. Before committing to a debt settlement company, ask how they calculate their settlement rate projections.
At Debt Shield we base our projections on real, in-house data and records of the success our negotiators have had with various creditors. We specifically tailor projected settlements to each one of our clients' enrolled accounts. Every Debt Shield client gets a realistic settlement projection before committing to the program.
3. Choose a debt settlement company that belongs to the United States Organization for Bankruptcy Alternatives (USOBA).
The United States Organizations for Bankruptcy Alternatives, or USOBA, represents the debt settlement and negotiation industry and is considered to be one of the most respected industry trade association for the debt negotiation industry. USOBA holds its members to high standards and engages in proactive review of member companies to ensure they're adhering to the USOBA membership standards.
USOBA members include companies like Debt Shield, as well as consumer advocates seeking fair regulation of the debt settlement industry that will provide the highest levels of consumer protections. Some of its members are considered leaders in the debt settlement industry.
Visit the consumer section of the USOBA website for debt settlement FAQs and to subscribe to USOBA's consumer newsletter, which provides money-savings tips and other financial tools.
4. Choose a debt settlement company that belongs to its local chamber of commerce.
Before choosing any debt relief company, make sure it is a legitimate business with a positive professional standing. One way to do that is to check if it belongs to a local chamber of commerce. Debt Shield belongs to the Maryland Chamber of Commerce, which a member of the Chamber of Commerce of the Unites States.
Debt Shield is also a member of the International Association of Professional Debt Arbitrators (IAPDA), the Netcheck Commerce Bureau, Dun & Bradstreet and Debt Shield's website has earned the Secure Site Seal from GoDaddy.com.
5. Choose a debt settlement company with a no prepayment penalty policy.
Some debt settlement companies penalize their clients by charging a fee for adding more money to their set-aside accounts. When you deposit more money to your account, you are potentially reducing the length of your program because you may acquire the funds needed to reach a settlement sooner. Debt Shield encourages clients to deposit as much funds as possible into their set-aside accounts so we can start settlement negotiations faster and shorten the projected length of their program.
6. Choose a debt settlement company with no long-term commitment policy.
Some debt settlement companies require long commitments to their program, but Debt Shield does not hold clients to a long-term contract. Clients are free to leave the program at any time and for any reason without any sort of termination or cancellation fee. This means we must also provide top-quality service throughout their time with Debt Shield. While there is no obligation for them to make a long-term commitment, we maintain our commitment to them.
7. Choose a debt settlement company that will disclose how they are funded.
Some debt relief companies, especially consumer credit counseling agencies, are nonprofit companies. Instead of charging you directly (aside from “voluntary” fees) they can be funded by your creditors. Their job is to help you repay your debts to your creditors in full. Debt Shield is a for-profit company that does not work for your creditors, we work for you. The amount of money you set aside in a third-party savings account each month is designed to cover the lump sum amount we will offer your creditors to settle your account; our fees are included in the money you set-aside each month.
8. Choose a debt settlement company that gives back to the community.
A debt settlement company's commitments to its community and its charitable giving practices may not have anything to do with its business practices. But here at Debt Shield, we believe charitable giving is an appropriate extension of what we do for our clients every single day. Learn about our community involvement and see a list of the employee-selected organizations that have benefited from our contributions.
Debt settlement is a legitimate form of debt relief for people with overwhelming credit card debt and/or medical expenses who are looking for an alternative to filing for bankruptcy. But the reputation of the debt settlement industry has been influenced by misinformation and by behavior from unscrupulous companies. Understanding your debt settlement company is just as important as understanding the debt settlement process. Even if you do not choose Debt Shield as your debt settlement company, we hope you find this information valuable when choosing the right debt settlement company for you.
For more information about Debt Shield and to get your free debt analysis, go apply online.
