Selecting the right settlement company to negotiate debt is essential to any consumer’s financial freedom.
Los Angeles, CA (Vocus) March 27, 2010
It’s no secret -- Americans love to spend. As consumer debt continues to grow, Americans are now entering uncharted waters. According to http://www.CardWeb.com , 43 percent of American families now spend more than they earn each year. The nationwide fiscal fallout has resulted in personal bankruptcies doubling over the past decade.
According to the Associated Press, bankruptcies are soaring, and in 2009 1.41 million Americans filed for personal bankruptcy. This is a 32 percent jump from 2008. Although bankruptcy has a negative impact on a consumer’s credit score for ten years, the stigma of bankruptcy can last a lifetime.
From a financial planning perspective, sometimes it makes sense to consider debt settlement as a favorable alternative to bankruptcy. New Era Debt Solutions, a national leader in providing consumers and small businesses financial relief through debt settlement, has five suggestions that will help consumers choose the right debt settlement company:
1. Shop, compare, and ask the right questions.
Consumers should do their homework first and not rush into things. Anyone facing financial troubles must be careful and do their due diligence. New Era Debt Solutions has a list of 14 debt settlement questions consumers must ask when shopping for a reputable company. This list will assist the consumers in making the right decision.
2. Is the debt settlement company an accredited member of The Association of Settlement Companies (TASC)?
TASC is the largest trade association serving the debt settlement industry. TASC members voluntarily agree to comply with TASC’s strict industry standards. Accredited members of TASC comply with best practices standards and undergo annual audits performed by BSI. Any company a consumer chooses should be an Accredited TASC member.
3. Look for a performance-based fee structure and money back guarantees.
A company should charge fees based on performance and results. Most companies charge a flat fee based on a percentage of the debt amount. The problem is that they collect their fees up front, before any debt is settled. The majority of fees should only be paid after the work is done, not before. Consumers should expect results and get a written money back guarantee.
4. Look for a company that will discuss all of the options.
Every consumer’s financial needs are unique, and so should the debt solution plan. There are only five debt relief options available to people who are struggling with their finances. It is important that consumers know what these options are so that they can make an informed decision.
5. Look for honesty and transparency.
Consumers must look for honest answers to tough questions. Will creditors call? Can I get sued? What about my credit score? Some companies will promise anything to get a customer in the door. Consumers must educate themselves and ask the right questions to in order to get the right answers.
“Selecting the right settlement company to negotiate debt is essential to any consumer’s financial freedom,” said Alex Viecco, Vice-President of New Era Debt Solutions.
For additional credit card and debt settlement tips, go to http://www.NewEraDebtSolutions.com .
About New Era Debt Solutions
New Era Debt Solutions is a national leader in providing consumers and small businesses financial relief through debt settlement. We provide unparalled financial services through our reputable debt-settlement solutions, performance-based compensation model, top-ranked customer satisfaction rate, and by setting the standard for the most debt settled per client. For over a decade, our clients have helped make us the success we are today. We have achieved a new milestone, providing debt resolution services for more than 20,000 accounts involving assets in excess of $140 million.