Boca Raton, FL (PRWEB) February 20, 2013
Over the past 8 years or so the problem with unscrupulous debt relief firms has grown to a level never seen before. There were always firms that did not perform like what the customers expected but it has now become very confusing to even differentiate between which firms do what. This is because most of these different types of firms advertise under “Debt Management” or “Debt Consolidation” and consumers searching for help often don’t know the difference between these types of services. For consumers facing high interest credit card debt that are current on accounts and want to maintain and improve credit ratings, Debt Management is the correct service. For consumers that are slightly delinquent up to as long as 5 months are often good candidates for Debt Management too. During the last decade many debt relief firms started springing up all over the country offering “Debt Settlement”. This is a completely different service than Debt Management.
Not all Debt Settlement firms are bad and in some cases consumers that are in a position where they just cannot pay the minimum required payments on accounts these consumers may find relief with a legitimate debt settlement firm. However with a bit of guidance settling accounts that are over 6 months past due can be done by the consumers without having to pay a firm to do it. Monthly deposits can be made into the consumers bank accounts and build up until such time as settlement agreements with the collection agencies handling the accounts can be reached without the need to pay an outside firm to do it. CLICK HERE for information on handling settlements.
In order to maintain and improve credit scores consumers must pay accounts in full and this can become difficult to accomplish when interest rates are very high. There are several ways to accomplish this quicker which involve taking advantage of balance transfer offers, Debt Management programs or a combination of both. Debt Management firms submit proposals for predetermined amounts to creditors electronically nowadays and the process with most of the major credit card issuers is very fast now. Many of the proposals submitted on behalf of debt management clients now only take 48 hours for approval. For consumers carrying significant balances with high interest rates that want to maintain and improve credit scores accounts must be paid in full not “Settled” for less than the full balances.
Follow The Tips Below For Obtaining The Best Repayment Terms
1. For consumers intent on maintaining and improving credit remember that “settlement” is not the right service so be aware of which type of service is being offered. ( Will the accounts be paid in full?)
2. Debt Management programs offer a service where accounts are paid in full at lower rates over a shorter period of time.
3. Always check with the Better Business Bureau before signing up with any firm to see what kind of record the firm has.
4. The counselor conducting the analysis of the debt situation should be thorough and explore balance transfers along with debt management.
5. The counselor analyzing the debt portfolio of the client should be able to provide calculations for what the difference in payoff times are and provide a list of savings in interest through the program.
6. Be sure the firm has modern electronic proposal and payment processing capability.
7. The counselor should address the possible need for due date changes prior to enrollment to avoid and past due amounts that may occur and damage the credit score.
8. The counselor handling the analysis should always make sure that if a credit card may be needed after enrollment that one is left out of the program or a new one is obtained before enrollment. CLICK HERE For a list of CAUTIONS when shopping for debt relief services.
For more information choosing the correct debt relief service visit http://www.debtsynergy.com