Questions To Ask Before Working With a Debt Settlement Company
When you owe a considerable debt, you can negotiate with your debtors to allow you to pay a lesser amount and prevent you from facing a financial crisis. You can choose to negotiate your debt on your own or seek the services of a debt settlement company.
At Freedom Debt Relief, we believe these are the questions to ask before working with a debt settlement company.
How Much Fee Will I Have to Pay?
The fees you’ll pay are among the first questions you should ask a debt settlement company. Different debt settlement companies charge different fees, depending on your case.
Typically, these companies ask for a flat rate fee. Some companies may ask for a percentage of the entire amount they settled. Therefore, the more the amount, the higher the fees. Look for a company that charges a flat rate to avoid uncertainties. You’ll home know the exact amount of money you need to pay.
One thing you should keep in mind is that the debt settlement company should not ask for upfront payment. According to the Federal Trade Commission’s Telemarketing Sales Rule, clients should pay after the company settles all their debts or at least one of them.
What Are Your Certifications?
When you visit a debt settlement company, you should ask them about their certifications. Certifications show that the company is allowed to operate legally and that it can handle your debt issues properly. To ensure their legitimacy, you can also check if they belong to professional trade associations like AFCC (American Fair Credit Council).
Is Freedom Debt Relief legit? This is one of the questions that most customers as when seeking our services. To enhance our customers’ trust, we normally provide them with our credentials, so they can determine our legitimacy and determine if they want to do business with us.
Am I a Good Candidate for Debt Settlement?
When hiring a debt settlement company, you should first ask them if you’re a good candidate for their services. The best candidate for debt settlement is a person who has been behind their debt payment for several months and can’t pay even the minimum amount. Also, your debt should be $10,000 and above.
Asking if you’re a good candidate for settlement before you start working with the company allows you to figure out something else to help you settle your debts before it’s too late. Additionally, it will help you prevent issues along the way.
When Can I Expect My First Settlement?
Most clients usually wonder when they should expect their debt settlement company to make the first settlement.
The answer to this question is not straightforward, and companies don’t like offering guarantees. However, a legit debt settlement company should give you specific timelines to prevent you from worrying too much. On average, it may take between four to six months.
At Freedom Debt Relief, we give our customers the exact timelines of when they should expect us to make the first payment, protecting them from anxiety. Nevertheless, you should expect payment within the first three months after reaching and signing an agreement.
Is There a Possibility I Will Get Sued?
There is a high chance your creditors will sue you if you owe them a huge debt and have failed to pay. Even if you seek the services of a debt settlement company, it may take time to settle your debt, especially if you owe several creditors.
Typically, the debt settlement process may take about three to five years. This is such a long time, and your creditors may decide to sue you.
You should avoid a debt settlement company that promises you won’t get sued. Instead, look for one that aims to shorten the debt settlement period to reduce your chances of getting sued. At Freedom Debt Relief, we strive to keep our clients out of trouble by ensuring we pay their debts within two to four years.
Getting a reputable debt settlement company to help you deal with your debt issues can be challenging. Go through the questions to ask before working with a debt settlement company to determine the best company to work with and avoid problems with your creditors.