The demand for debt relief has never been higher. The United States just went though one of the deepest recessions since the great depression and as a result there are more people currently in debt than any time in history. Consumers and small businesses might currently find themselves massively in debt and in search for legitimate debt relief. Due to the massive demand from people in debt there are many different debt relief businesses to choose from and it seems like there are new players entering the market every day. It is critical that consumers know how to locate legitimate debt relief sources in order to get the most favorable deal. A legitimate debt settlement company can eliminate up to 80% of your unsecured debt however a, inexperienced company can end up doing more harm than good.
Consumers should understand that debt relief companies vary both in terms of effectiveness and overall business model. The first thing that you should ask is how their payment system works. You should search for a debt company who has a performance based fee structure meaning that they only get paid when they eliminate your debt for an acceptable amount. Their fee should be based on the amount of debt they were able to eliminate, not the entire debt balance. The difference between these two fee structures can add up to a lot of money. Also you should never pay an upfront fee. There are plenty of legitimate debt relief companies that will not collect any money until they successfully eliminate your debt at an acceptable amount.
The top performing debt relief companies will be able to eliminate at least 50% of your unsecured debt and case in the 80% range are not uncommon at all in this market. This average used to be closer to 30% just a year ago but thanks to the recession and the financial stimulus bills, the average went up significantly. If you are over $10,000 in debt it would behoove you to talk with a debt repair company but you need to know how to find the top performing companies if you want to get the best deal.
If you want to get out of debt and hire a debt repair company for debt negotiation then I have an important piece of advice. Do Not go directly to a particular debt settlement company but rather first go to a debt relief network who is affiliated with several legitimate debt companies. In order to be in the debt relief network, the debt settlement companies must prove a track record of successfully negotiating and eliminating debt. They must also pass an ethical standards test. Going through a debt relief network will ensure that the debt company you are provided with is a legitimate and respected company. This is the most efficient way in finding the best debt settlement companies and increasing your chances of eliminating your debt.
Consumers should understand that debt relief companies vary both in terms of effectiveness and overall business model. The first thing that you should ask is how their payment system works. You should search for a debt company who has a performance based fee structure meaning that they only get paid when they eliminate your debt for an acceptable amount. Their fee should be based on the amount of debt they were able to eliminate, not the entire debt balance. The difference between these two fee structures can add up to a lot of money. Also you should never pay an upfront fee. There are plenty of legitimate debt relief companies that will not collect any money until they successfully eliminate your debt at an acceptable amount.
The top performing debt relief companies will be able to eliminate at least 50% of your unsecured debt and case in the 80% range are not uncommon at all in this market. This average used to be closer to 30% just a year ago but thanks to the recession and the financial stimulus bills, the average went up significantly. If you are over $10,000 in debt it would behoove you to talk with a debt repair company but you need to know how to find the top performing companies if you want to get the best deal.
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