==== ====Are you deeply in debt with high interest rates or cant make your mortgage payments? Pleaseclick below for helpwww.dynamicsolutionsintl.com/ohall==== ====What is Debt Settlement all about?Within the past few year Americans all across the country are being affected by the poor economicconditions. Millions of people have lost their jobs and are on unemployment. Many more havebeen fortunate enough to keep their jobs, however, they have been forced to accept reducedwages or their hours have been cut. These difficult conditions combined with high interestpayments on credit cards has forced many people into a negative cash flow position with everyoneasking themselves how do I get rid of my credit card debt and get back to positive cash flow? Theanswer for most people is debt settlement.Debt Settlement is the choice/ realization by a person with credit card debt that they can no longerafford their monthly payments to their credit card companies and they choose to save thosemonthly payments so they can settle with their creditors for less than the full amount owed atsome point in the future.Why use a Debt Settlement company? It is important to use a debt settlement company for manyreasons. The most important is the combined power or pooling your debt with other peoples debtto be able to make the offer attractive to a credit card company. For example, if you have a$10,000 debt with Creditor A, and you offered that creditor $4,000 to settle that debt, the creditormay accept the offer, however, your level of importance within Creditor As financial portfolio of$10 Billion dollars of debt is so insignificant to measure.Now imagine you saved that same $4,000 with a debt settlement company and now when the debtsettlement company negotiates with Creditor A, they are not just offering the creditor $4,000 but allthe other clients working with the debt settlement company. So in this example imagine thebargaining power the debt settlement company has when they go to bank with $400,000 to settledebt. The bank sees this money as a cash flow and not only are the accounts given priority, theyare also subject to better settlements than an individual going to the bank on their own.How to choose a Debt Settlement Company?It is extremely difficult for an outsider to make a sound decision when considering a debtsettlement company. Do you sign up with a company that advertises on TV? How about one onthe radio? Did you just receive a letter in the mail asking you to call some number regarding yourVISA or Master Card account? There are plenty of ways debt settlement companies try to gainclients, but all of these ways dont provide a consumer with valuable information to comparedifferent debt settlement companies to be able to select the best one. By reading this article, youwill have done much more research due diligence that a busy consumer doesnt have the time or
industry knowledge to do.Our research staff has over 40 years of combined consumer finance, consumer credit counseling,debt management, debt consolidation, and other financial services experience, enabling us to cutthrough the smoke and mirrors many debt settlement sales people erect and determine if wewould recommend the company to a family member. If we wouldnt send a member of our familythere, we wouldnt recommend the company to anyone else.What do we look for before we recommend the best debt settlement companies?We compile debt settlement reviews on companies as we become aware of them so they can berated and determine if they are worth working with. Some of the items we look for are Fulldisclosure and compliance with Federal Trade Commission. We check the compliance by askingthese 14 standard questions and we rate each company based on their response.12 questions we ask when we review a debt settlement company:1. Are you a member of USOBA, TASC, or NADRC?Membership in USOBA, the United States Organization of Bankruptcy Alternatives, TASC, TheAssociation of Settlement Companies, or NADRC, National Association of Debt Relief Companiesis a must for any debt settlement company. These are the trade organizations that monitor thedebt settlement industry and membership into these companies requires compliance to strictindustry standards.2. What are your fees?A company should charge a fee based on your debt amount paid over a reasonable time. Wedont recommend working with companies that collect all their fees before you are able to savemoney for settlements.3. Are you paid on commission?When someone is paid on commission, the salesperson may tell you anything they want to pushyou into signing up. We recommend working with a company that pays its employees commission.4. Do you have a money back guarantee if I change my mind?We recommend at least a 30 day money back guarantee. If a company isnt willing to do this, dontbe willing to sign up with them.5. How long have you been in business?Most settlement programs go from two to four years, so it is important to work with a company thathas been doing business for at least four years. This means they have clients that have gone allthe way through the program and describe the full experience of working with the company.6. Will my creditors keep calling me?
No one can stop creditors from calling. It may be possible to redirect the calls with new devices,but the phone will still ring.7. Will you be making monthly payments to my creditors?Debt Settlement companies do not make payments to creditors. They dont reduce your interestrate or combine your debts into a new loan.8. Can I get sued?Yes. A good debt settlement company can help avoid lawsuits, and will settle judgments.9. What will happen to my credit score?It will go down, and be considered bad credit. In a debt settlement program, your creditors are notreceiving payments, so they report you as late, which makes your score drop. Getting rid of thedebt and making on time payments on other accounts (home and car loans) will help the score goback up over time.10. When can I expect my first settlement?It will depend on how quickly you can get money into your savings account and depending on thesize of your creditor accounts, but most people receive settlement offers within the first six months.11. Are there tax consequences on forgiven debt?It is possible to have to pay taxes on the forgiven debt. It can be avoided in many situations,however the possibility does exist.12. Where is my money going when I make my payments?Your money needs to go to a FDICinsured special purpose account by a third party. No funds should be sent directly to a debtsettlement company.Depending on how a company answers these questions will determine how we rate eachcompany. We do continual reviews and updates checking the companies and seeing if they are incompliance with regulations and/or if they have come under scrutiny of an attorney general.Finding a company that answers these questions correctly is just a part of the selection process.There are many more items that need to be reviewed before signing up with a company. If youwould like more information please contact me.Steve SharmaSenior Debt Settlement Researcherhttp://debtsettlementreviews.net
Article Source:http://EzineArticles.com/?expert=Steve_Sharma==== ====Are you deeply in debt with high interest rates or cant make your mortgage payments? Pleaseclick below for helpwww.dynamicsolutionsintl.com/ohall==== ====