Choosing to work with a debt reduction company is a big decision. While it’s not for everybody, sometimes it’s the best option. When it is the most suitable option, how do you find the best debt reduction company?
How to Choose a Debt Reduction Company
There are a few things you want to do before choosing a debt reduction (debt settlement) company.
1. Do they charge fees before reducing your debt?
This is probably the number one question you want to ask when vetting debt reduction companies.
You should always double-check if any type of fee is charged before your debt is reduced or settled.
DebtBlue doesn’t charge you anything before you see results. If you don’t get your debt forgiven or reduced, you pay nothing. You can also call us for a free consultation and free information. With DebtBlue you save. It’s a guarantee.
2. What does the fee structure look like?
All debt reduction companies charge a fee at some point. After all, they are performing a valuable service. When choosing a debt reduction company, ask how they will charge their fees.
There are two main fee-based structures: flat based fee plan and savings based fee plan. Most debt settlement companies charge a flat fee based on the total debt amount you enroll. A saving based fee calculates your fee based on how much debt the debt settlement company is able to reduce. DebtBlue offers both flat and savings fees, depending on the situation.
Don’t forget to ask if there is a monthly fee involved as well. Remember, you don’t want to be charged a fee before settlement.
3. Are there a lot of customer complaints?
You probably already look up reviews before you make big financial decisions, but it’s especially important in the case of debt settlement companies.
The first site you should check is the Better Business Bureau (BBB). If they have a lot of complaints on BBB, especially if they have not been resolved, steer clear. Next, check other review sites like Facebook and TrustPilot.
DebtBlue is committed to complete customer satisfaction. If there is a complaint or misunderstanding, we make it right. No questions asked. We are proud of maintaining great reviews, both online and off.
4. Are they a member of the American Fair Credit Council?
The American Fair Credit Council (AFCC) helps protect consumers by maintaining a strict set of guidelines for best practices in the debt reduction industry. AFCC members must properly disclose their practices to the council and customers to ensure consumer protection.
You know that a debt settlement company is in it for the long haul if they are an AFCC member. DebtBlue has been a member of the American Fair Credit Council since for over 20 years.
5. Are they a member of the International Association of Professional Debt Arbitrators?
Another thing to check for is if the debt settlement company is a member of the International Association of Professional Debt Arbitrators (IAPDA). IAPDA membership means that they have complete a rigorous certification and training process.
DebtBlue is a certified member of IAPDA. We believe that our business and customers benefit from a highly experience and trained staff of professionals who are intimately familiar with the Fair Debt Collection Practices Act, budget analysis, negotiating techniques, and proper communication with creditors.
6. What’s the rescission period?
Rescission is another word for nullification or annulment. A rescission period is the amount of time a customer has to cancel their agreement after signing it. For example, you may have a 5-day rescission period that allows you to ask further questions, analyze your situation, and cancel the agreement if you want.
Most debt settlement companies offer a rescission period of about 3-5 days. DebtBlue, on the other hand, offers an industry-leading 30-day rescission period.
7. Are they a full-service debt reduction company?
There are many aspects involved in reducing or settling your debt, including consulting, negotiating, and client support.
Sometimes, a “debt settlement company” will be quick to sign you up but then outsource the negotiations and customer service to another firm. You only want to deal with one company when settling your debt.
Many times, the companies that outsource their services are affiliated with a law firm. Ask directly and you will get your answer.
8. Is a service fee money-back guarantee offered?
Your debt reduction company should be confident in their abilities to get your debt reduced? They can do this by offering a service fee money-back guarantee. This basically tells you that you can get your money back if they don’t settle your debt for less than what you owe.
9. How did you feel about your consultation?
Many debt reduction companies such as DebtBlue offer free consultations. This is a great time to understand how they communicate and whether or not they can answer your questions properly.
In the consultation, you can ask all of the questions outlined above. You should also find out exactly how the debt reduction program works, including other possible options that might work better for you.
Other options that may work better for you include bankruptcy, debt consolidation, and credit card counseling. If it sounds like they are most interested in signing you up for a debt reduction plan as soon as possible without fully assessing your financial situation, they probably aren’t looking out for your best interests. You shouldn’t feel rushed.
Why Choose DebtBlue?
Get your life back on track with a free call to DebtBlue:
- Significantly reduce what you owe
- One low monthly payment
- Get rid of your credit card debt fast
- Unlike Bankruptcy and Consolidation, debt settlement is not reported on your credit file
- Results are guaranteed or you pay nothing
When working with DebtBlue, certified professionals negotiate with your creditors on your behalf. We take the stress off your shoulders and begin to work strategically to lower your payments and free you from debt.
Before calling, get all your credit card statements and list of total debts together so we can better understand your financial situation. The more details you have, the better we can assist you.
Let’s get started! Contact DebtBlue today for your free consultation: 855-332-8258 (855-DebtBlu)