Finding legitimate debt settlement companies is not that difficult but consumers need to be aware that just like every industry, there are corrupt companies in the debt industry as well.
There is a proven method to qualify your debt settlement company as legitimate and some questions you should always get answered before you agree to anything.
A legitimate debt settlement company will be able to eliminate at least 50% of your unsecured debt however a bad company could actually end up causing you more harm than good.
This article will teach consumers how to locate the top performing debt companies and what to look out for so you can avoid getting taken advantage of.
The first thing that you want to clarify is how their fee system works.
Make sure that they have a performance based fee system and never pay an upfront fee.
A performance based fee system is where the debt settlement company only gets paid by a percentage of the debt that they are able to eliminate.
Make sure that this fee is based off of the debt they actually eliminate not the entire loan balance.
Some debt companies will try to charge consumers based on the entire loan balance and this could end up costing you a lot of money.
Legitimate debt settlement companies will only collect a fee when they settle your debt for an acceptable amount.
Make sure that the company is established and has been around for at least a year.
The more established companies generally can get you a more favorable settlement due to the relationships they have developed with all the major creditors.
Also, it would be wise to read reviews on the particular company that you are thinking about hiring.
Legitimate debt settlement companies should be known in the industry and reviews should be available however, I would not let one review persuade your decision either way.