A popular saying goes, “If a thing is worth doing, it’s worth doing well.” This applies to almost everything in life, including the debt relief process. After all, getting it right the first time can save you money, time, and hassle.
You can only get your desired financial results when your debt relief program works. It has the best chance of doing so if you know what to expect and choose a good partner capable of setting you up for success.
Here’s more on how to make sure your debt relief program works.
Know What the Debt Relief Process Entails
Understanding what will happen if you sign up for a debt relief program is half the battle. This includes the potential advantages, challenges and everything in between. Be aware debt relief is really only an option for unsecured debts not backed by collateral, like medical bills, credit cards and personal loans.
At the heart of debt relief, also known as debt settlement, is reducing how much you owe to creditors. Why might lenders agree to accept less than the amount you owe on paper? Because if it looks like you’re potentially going to default on the balance, they might get nothing. So, it can be in everyone’s best interest to strike up a deal.
Building up leverage requires saving up a percentage of each of your balances in a special account via monthly deposits. Some consumers decide to make these monthly payments rather than keep up on payments to their creditors which means they may face collections calls and damage to their credit scores during the process — with the goal of settling their debts so they can start to rebuild their credit rating. This is not a choice to take lightly, so consider the pros and cons.
Pick a Winning Debt Relief Program
Reading reviews is an excellent way to gain a better understanding of what working with various programs really looks like for enrollees. Seeing other people’s triumphs and mistakes can help you make the right choices along the way. Reviewers also tend to offer honest feedback about how different companies communicate, how long it may take and what they did/didn’t like about their chosen programs. Leading companies in the industry have hundreds or thousands of reviews available online across multiple sites.
Avoiding debt relief scams is key. According to information from this trusted Freedom Debt Relief program, a few key scam warning signs include:
- Companies asking for fees up front before they’ve settled any of your debts.
- Programs making promises to eliminate all your debts, or to achieve certain results.
- Any organization claiming it can put an end to collection calls or lawsuits on your behalf during the relief process.
A quick way to weed out crooked companies is to choose your partner from the American Fair Credit Council (AFFC) Accredited Member list. These organizations must undergo an annual third-party audit of their business practices and adhere to a code of conduct prohibiting them from acting illegally.
Debt relief has helped thousands of people settle unsecured debts over the years, but it’s not guaranteed to work every time. In fact, any debt relief service that claims it can deliver results ahead of time is lying. What can you do to increase your chances of getting the best results? Do your own research about the process before jumping in — including possible advantages and pitfalls — and choose a winning program while avoiding scams along the way.