Published on July 1st, 2012 | by admin1
The Debt Settlement Trap
For anybody interested in settling their debts with the help of debt settlement companies there are many options available today. In today’s world this has become a fast growing industry. However before blindly putting your future in the hands of any company it is important that you should know the workings of the industry. Today the debt relief or the debt settlement market is so saturate with companies that people may get fooled. Both types of companies exist-the legally established ones and those that are inexperienced. It is necessary to make sure that you can differentiate between the two as a wrong decision made will mean that there will be a whole new set of problems for you. Hence it is necessary that as a customer you are able to distinguish between the legitimate and the illegitimate companies.
Any legitimate and well settled company will have certain characteristics that will help to distinguish between the two. It is very necessary to check their affiliation, before trusting any company it is very necessary to check to see whether they are affiliated to the Association Of Settlement companies (TASC). TASC is a third party organization that does the work of overseeing and controlling the debt settlement companies and also is responsible for assigning them qualification depending upon their performance statistics and ethical standards. This way as a customer you are able to judge how reliable the company will be and thereby reduce the chances of your getting cheated. If you find that the company is not affiliated to TASC then it is best to steer clear from these companies.
Also any legitimate company will have a refund policy. In case they are unable to provide you with a satisfactory settlement policy then they should pay you back all the money they have charged you as fees. This is an important part of the legal papers that they draw up at the time of signing the contract with you. Most of the experienced companies can get as much as 50% rebate on your debt amount which means that they should be able to eliminate about half of your debt. If the company is promising to do so you can be reasonably assure that they will be a legitimate and experienced company. Moreover you should not worry about losing your credit score as this will be a temporary drop and can soon be recovered.
If you are interested in getting your debts settled by a debt settlement company and are not sure where to go and who to approach to get the proper companies then all that has to be done is to log into a debt relief network. The recommendations from here are more often than not proper, legalized and experienced. Any company to be on the debt relief network has to first submit their track records and a record of their ethical standards and only then are they included in the record. Thus before blindly following somebody’s recommendation it helps to keep these pointers in mind.