Which business is right for you?

We have all experienced overwhelm with our financial situation at some point in our lives. It’s incredibly uncommon to have a squeaky clean image- one without mistakes with our money. And what if you’re at the point in your life where you’re making purchases with your credit card, wincing at the register because you aren’t sure if you’ll be declined? You may find yourself with more month at the end of your money, and holding your breath for how the next bill to be paid. 

If you currently live with anxiety because of your debt, and are unable to see a light at the end of the tunnel, it may be time to solicit the help of a debt relief company. We want to provide you with some tips for how you can make an informed choice as you prepare to attack your debt and regain financial independence. 

What is a Debt Solution Company?

A debt solution company is one that provides you multiple methods for resolving your debt. Ideally, it will consult with you to determine the solution that best fits your needs. You’ll learn that not all companies will do this for you, and to keep your eye out for a company who offers consultations and multiple options for you. These options include solutions like: 

• Debt Agreements/Settlement- a method of reducing your debt into payments you can afford.

• Personal Insolvency Agreements- the use of legally binding agreements with creditors that provide flexibility in payments to catch up on debts rather than filing for bankruptcy. This involves giving ownership of property to a trustee to present an offer for payoff to creditors.

• Debt Consolidation– a method of taking all of your debts and consolidating them into one payment, preferably with a low interest rate.

• Bankruptcy– the legal process by which you are absolved of most to all of your debt.

What to Look for in a Debt Solution Company

Many companies providing debt management services may seem like a great option, but once you ask the right questions, you may find they only provide one product or service. You might also find that their services do not protect your assetsduring the time in which you are paying down your debts. Some have a process of paying off debt that leaves negative marks on your credit, or they charge fees that are disproportionate to your efforts to regain control of your finances. Here are some key features of a debt solution company that you should look for in your search: 

• Affordability– How is the debt solution company charging for their services, and what are they charging? Ideally, you will pay no more than 20% in total fees for their services. 

• The duration of services– How long will it take to resolve your accounts and pay off your debts with their programs? 

• Employment– Will this program affect your employment? 

• Credit Rating– Does this company utilize methods that allow for the improvement of your credit rating? 

• Legal Action– Will this company’s approach to your debt payoff stop your creditors from enforcing your debt through legal means? 

• Assets- Will your assets be protected during the time you are paying off your debts? 

• Travel- Will this company’s methods of debt management restrict you from travelling overseas? 

• Lifespan of the Company– How long have they been around, and how lengthy is their experience with debt solutions? 

• Ratings and Reviews– How well does this company stack up against other debt solution companies available to you? 

• Debt Management– How does this company handle debt management? Do they focus on reducing interest rates, applying for hardship programs, or negotiate the balances on your debt? Look for companies who focus on negotiating the balances agreed upon by the creditors because you’ll find that the debt will be categorized as “resolved” and won’t hurt your credit rating. 

You’ve taken the first step with acknowledging that your debt may be a bit larger than you can handle. Consider these questions and tips as you navigate the companies offering their services as you move toward financial freedom.