Debt negotiations are becoming more popular among consumers today looking for a way out of their debt. While negotiations can be valuable tool for finding financial relief, there are many risks involved that can lead to more problems. Unfortunately, the bulk of problems involved with debt negotiations is dealing with scams or non-reputable companies.
The Federal Trade Commission has provided information for consumers to learn about debt negotiations and other relief solutions. This information is very important when seeking help with debts and can keep consumers out of the hands of scammers.
The Worst
The risks associated with third party debt relief companies is knowing whether or not you are getting a fair deal. There have been instances in which consumers paid money for debt negotiations that never even took place. As the consumer went on about their business thinking their debts had been resolved, their accounts were accumulating penalties and holding a delinquent account status. If even a deal had been negotiated, failing to get a copy of the deal in writing can lead to difficulty proving fraud down the road.
Most people never think twice or question the company they have hired to perform debt negotiations, which can be a big problem. It is always acceptable, and should be commonplace, to ask questions to the debt negotiator. Maintain an active role in the debt process and let the negotiator know you are paying attention.
The Best
The most important thing to remember in debt negotiations is that you have the right to negotiate directly with your lender. There is generally no need for a third party negotiator unless you need additional assistance. A debt negotiation lawyer can be highly beneficial in these situations as they are well versed in negotiations and are bound by an ethical code of conduct. However, if you choose to hire a third party company be sure they possess certain characteristics.
A reputable company will not attempt to sell one particular service or push for a commitment. While these companies are offering you a service, you should never feel pressured or rushed in your decision. The company will also staff licensed or credentialed employees such as financial advisers or accountants. Any company whose employees do not hold a degree or only boast "in house" training should be avoided, you want someone who knows what they are doing. A legitimate agency will not require upfront fees for services or will offer a money back guarantee if services are not rendered adequately.
The Federal Trade Commission has provided information for consumers to learn about debt negotiations and other relief solutions. This information is very important when seeking help with debts and can keep consumers out of the hands of scammers.
The Worst
The risks associated with third party debt relief companies is knowing whether or not you are getting a fair deal. There have been instances in which consumers paid money for debt negotiations that never even took place. As the consumer went on about their business thinking their debts had been resolved, their accounts were accumulating penalties and holding a delinquent account status. If even a deal had been negotiated, failing to get a copy of the deal in writing can lead to difficulty proving fraud down the road.
Most people never think twice or question the company they have hired to perform debt negotiations, which can be a big problem. It is always acceptable, and should be commonplace, to ask questions to the debt negotiator. Maintain an active role in the debt process and let the negotiator know you are paying attention.
The Best
The most important thing to remember in debt negotiations is that you have the right to negotiate directly with your lender. There is generally no need for a third party negotiator unless you need additional assistance. A debt negotiation lawyer can be highly beneficial in these situations as they are well versed in negotiations and are bound by an ethical code of conduct. However, if you choose to hire a third party company be sure they possess certain characteristics.
A reputable company will not attempt to sell one particular service or push for a commitment. While these companies are offering you a service, you should never feel pressured or rushed in your decision. The company will also staff licensed or credentialed employees such as financial advisers or accountants. Any company whose employees do not hold a degree or only boast "in house" training should be avoided, you want someone who knows what they are doing. A legitimate agency will not require upfront fees for services or will offer a money back guarantee if services are not rendered adequately.
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