Folks of Rhode Island RI Profit from Debt Settlement Services
Debt settlement has rather quickly become the most popular debt reduction strategy used today. Through the right Debt Settlement Plan, you will be debt free in 9-21 months, for around 25-75% of what you owe now.
With many benefits like these, give some thought to benefiting from a Debt Negotiation Plan. Well, regrettably, similar to the lending industry, many companies are fly by nights and giving the field a black eye.
Be leery of anyone that gives you a “quote” for a Rhode Island Debt Relief Program without first taking a close look at your current statements. In order to estimate accurately and model a Rhode Island Debt Relief Plan that you’ll be able to complete successfully all of the following factors should always be considered:
Who your collectors are.
The number of balances you have.
How delenquent your accounts are.
Account activity such as balance transfers, cash advances and large purchase.
Your state of residence.
Your financial situation.
Without taking a close look at your current financial circumstances, it is impossible to estimate with any accuracy how quickly or how much you can settle what you owe for, it is some what like a loan officer giving a quote on a car loan without taking a look at your credit report or how much your income is.
This should raise a major red flag and you should stay clear of them.
Make Sure You Ask These Questions Before You select a Rhode Island Debt Negotiation Organization
Does the Company have an “A” rating with the Better Business Bureau?
You Want to check with the BBB the rating of a Debt Relief Organization before you hire them. Don’t just take the company’s word for it. Contact the BBB and ask about the service.
How Much Does the Program Cost and When is the payment Taken?
Most Debt Negotiation Services receive 14% to 17% of your debt as payment for their plan. This compensation is calculated on all of your debt you have when you go into the plan and is collected before services are rendered. With the company’s upfront payment taken out in the first 10 to 17 months, almost all of what you pay on their program is collected by them as compensation.
In a bona fide Debt Management program you only are charged a small enrollment fee to go on the plan, so what you deposit into the program is actually put aside and not eaten up in compensation. The settlement fee is calculated on the amount forgiven by your creditors. This means the fees is basedon the amount the Business saves you. The Company should only receiv a settlement fee once a settlement has been reached. This makes it possible for you to get out of debt much more rapidly and gives the Company compulsion to get you the best possible settlement!
Does the Rhode Island Debt Reduction Business offer Debt and Credit Counseling?
Most Rhode Island Debt Settlement Businesses offer only debt settlement. A real Debt Assistance Company will offer Credit and Debt counseling as well as Debt Consolidation and Debt Settlement Services. Your credit counselor will help you evaluate all your options so you can decide which plan is right for your situation and budget. The Company should not promote one service but should assist you in picking the most appropriate plan for you.
How Long has the Rhode Island Debt Management Companies Been in the Debt Relief Business?
If it is a start up or brand new in the business, the Company will have no experience. Always beware of a Organization that cannot provide verification of their experience.
Can the Rhode Island Rhode Island Debt Assistance Organizations Stop the Credit Card Companies From Contacting Me?
No Rhode Island Debt Negotiation Company can promise they will end all collection calls. That is simply not possible. Anyone that claims they will is not being honest.
Will The Rhode Island Debt Consolidation Organizations be making monthly payments to the Collection Agencies?
The Credit Card Companies are not paid until a mutually agreeable settlement is negotiated and agreed to. Therefore, Debt Reduction Businesses do not make monthly payments to the creditors. That is simply how the service works. Any Debt Settlement Company telling you otherwise is not being truthful.
Can I be sued?
A collection agency can sue you anytime you are late on your payments. If you are told something else, a red flag has just been raised. The debt Management Company is not being truthful
Will This Ruin my Credit Report?
Contrary to what some people think or believe, all debt relief plans will have a negative effect on your credit score. Think about it you are in debt and are not paying as agreed. The debt reduction plan is meant only as a management tool. However as soon as your debt has been negotiated, your accounts will show a $0 balance and you will begin rebuilding your credit report.
When Will I Receive My First Settlement?
While this can vary in every circumstance, your first negotiation needs to be made within the first 12 months from the inception of your service. Any longer than 12 months is unacceptable and the Company that informs you of this is probably not the greatest company.
Where is the Money Held While I’m Waiting on Negotiation?
This is a great question. Your funds should be kept at a third party escrow Company that is FDIC insured. Any Business telling you to hold your own money or to send the money to them is not the best company. If you plan on settling your debt, you need to have the money available to pay the credit card companies when the negotiation is negotiated.
These questions are suggestions. The important point is to ask questions and get all the answers to those questions. With your questions fully answered, you can find the Debt Consolidation Service that is best able to help you.
What we’ve often seen, over and over, from a lot of Debt Negotiation Organizations popping up, are eager debt advisors making promises they do not have the ability to keep.
Consider this if you’re considering going in a service and are only concerned about the fees or having the lowest monthly payment. Sadly, signing up for a Debt Consolidation Program that sounds impossible will end up costing you far more than taking the time to find a great Debt Management Organization that will help you become debt free. Remember, without first taking a look at all of the factors above, you are getting ready for a unfortunate surprise coming your way.
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