Consumers Located in California CA Profit from Debt Consolidation Organizations
Debt settlement has swiftly become the most widely used debt relief strategy in America today. Through the right Debt Management Plan, you can be debt free in 9-28 months, for about 40-70% of your total debt.
With benefits like these, think of making the most of a Debt Relief Service. However, similar to the lending business, way too many companies are jumping in the trade and giving the trade a bad name.
Beware of anyone that offers to provide you a “quote” for a California Debt Assistance Plan without looking closely at your current account statements. To be able to estimate accurately and structure a California Debt Consolidation Program that you can easily successfully complete all of these factors should be taken into consideration:
To whom do you owe money.
The number of accounts you have.
How many payments have you missed.
Account activity such as balance transfers, cash advances and large purchase.
Your state of residence.
Your financial circumstances.
Without closing looking at your current financial condition, there is really no way to estimate how fast or how low your settlements will be, it’s a little like a loan officer attempting to quote on a car loan without first checking how much you owe or what your net income is.
This must raise a major red flag and stay away from them.
Make Sure You Always Ask These Questions Before You use a California Debt Relief Business
Does the Business have an “A” rating with the Better Business Bureau?
You Should Always confirm with the BBB the rating of a Debt Settlement Organization before you select them. Don’t just take the company’s word for it. Telephone the BBB and ask about the company.
How Much is the Plan Cost and When is the Compensation Received?
Most Debt Management Services charge 14% to 15% of all of your debt as compensation for their program. This fee is calculated on the amount you owe you have when you go into the program and is received up front. With the organization’s upfront payment coming out in the first 8 to 16 months, most of what you put into their service is received by them as compensation.
In a legitament Debt Reduction plan you only are required to pay a small enrollment charge to go in the service, so what you pay into the service is actually put aside and not collected in compensation. The settlement fee is based on the amount forgiven by your creditors. This means the fees is basedon the amount the Organization saves you. The Company should only take a settlement fee once a settlement has been completed. This helps you to get out of debt much more rapidly and gives the Business compulsion to do their best!
Does the California Debt Relief Organization offer Debt and Credit Counseling?
Most California Debt Management Companies offer only debt settlement. A true Debt Assistance Business will provide Credit and Debt counseling as well as Debt Consolidation and Debt Settlement Plans. Your credit advisor will help you consider all option open to you so you can choose which plan is right for your situation and budget. The Organization should not push one program but should assist you in deciding on the right plan for you.
How Long has the California Debt Assistance Companies Been in the Debt Assistance Business?
If it is a start up or brand new in the business, the Business will have no experience. You Should be leery of a Company that will not provide proof of their experience.
Can the California California Debt Negotiation Companies Stop the Credit Card Companies From Telephoning Me?
No California Debt Assistance Business can guarantee they will stop all collection calls. That is simply not feasible. Anyone that says they can is not being truthful.
Will The California Debt Settlement Companies be making monthly payments to the Credit Card Companies?
The Credit Card Companies are not paid until a mutually agreeable settlement is negotiated and approved. Therefore, Debt Assistance Services do not make monthly payments to the credit card companies. That is simply how the service works. Any Debt Assistance Company telling you otherwise is not telling the truth.
Can I be sued?
A creditor can sue you any time you are late. If you are informed of something else, a red flag has just been raised. The debt Assistance Company is not telling the truth
Will This Have a Negative Effect on my Credit Report?
Contrary to what you may think or believe, all debt consolidation plans will hurt your credit report. Think about it you are in debt and are not paying as agreed. The debt negotiation program is meant only as a management tool. However when your debt is settled, all of your accounts will show a $0 balance and you are ready to begin rebuilding your credit score.
When Will I Receive My First Negotiation?
While this varies in every case, your first settlement will be made within the first 12 months from the start of your service. More than 12 months is not acceptable and the Business that informs you of this is probably not the best match for you.
Where is the Funds Held While You’re Awaiting a Settlement?
This is a very important question. Your money should always be deposited at a third party escrow Company that is FDIC insured. Any Service telling you to hold your own money or to send the funds to them is probably not the best company to do business with. If you plan on settling your debt, you need to have the money ready to pay the creditors when the settlement is reached.
These questions are suggestions. The most important point is to ask lots of questions and get the answers to those questions. With your questions fully answered, you can find the Debt Relief Business that is best for you.
What we’ve often seen, all the time, from a lot of Debt Management Organizations popping up, are very eager debt sales people making promises they will not keep.
Think about this if you’re looking around and you only care about the fees or having the smallest monthly payment. Ultimately, going in a Debt Reduction Program that sounds too good to be true will end up costing you much more than looking for a good Debt Management Service that will do the right thing. Always remember, without first looking at all of the questions above, you’re going to get a rude awakening in your very near future.
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