In a perfect world we’d be able to take the companies that we deal with at their word. However, this isn’t a perfect world, and more often than not information gets left off the table if it benefits the company that we’re working with. This is especially true for debt settlement companies and the reason is pretty obvious – profit. If these companies were totally transparent with us, then it’s pretty likely they’d lose out on a good deal of money. Here are a few things that debt settlement companies typically fail to mention.
Not All Creditors Work with All Debt Settlement Companies
There are some creditors out there who won’t work with debt settlement agencies at all. This is a fact that these firms often fail to mention when trying to get you to hire them for help. What happens when creditors do this is you end up having to let accounts go more delinquent than might have been necessary. This means that when these agencies fail to mention to you that they may not be able to work with your creditors for you they might actually be impeding your ability to succeed in getting your debt taken care of.
They Have to Wait for Accounts to Charge Off Before Trying to Settle
One of the biggest problems with this is that it often ends up costing you more in the long run. This circles back to the first point; if some creditors refuse to work with the debt settlement agency then they are forced to deal with a debt collector. This means that instead of taking care of your debt immediately you’ll be forced to wait for your account to be sent to collections. This often leads to you being forced to pay anywhere from 10 – 15% more in the settlement arrangement.
You Can Do it on Your Own
Not only is it possible for you to settle your debt on your own, but oftentimes you’re actually able to get a better deal doing it that way. Not only are you skipping the cost of hiring a debt settlement company, but by engaging with your creditor before they charge off your account you are usually able to settle at the lower amount that isn’t usually available to creditors until your debt gets sent to a collector. You may also be eligible to settle the account with terms, whereas with debt settlement companies you’d be expected to pay off the account in full.
While debt settlement companies may be a good alternative to bankruptcy, it’s important to realize that bankruptcy may be an option for you as well. Instead of a debt collection agency being your first call make sure you do a little research. Those agencies aren’t going to want you to get any second opinions. So speak to your creditors directly, talk to an attorney, and take the time to find the option that is going to make the most sense for you.
If you find yourself struggling with debt or would like to find out about becoming debt free, call Debthelper at 800-920-2262, or visit @ www.debthelper.com.