People get debts such as a credit card debt, a personal loan or a medical debt among others. However, when experiencing difficulty in paying the debt and are looking into the viable options that you have, one needs to educate themselves about debt settlement services and what they entail. It is also essential that one gets to know more about some of the best debt settlement companies that are available.
To begin with, debt settlement involves getting into a program with a debt settlement company. The company then gets to engage with the creditor thereby trying to negotiate on behalf of the person who owes a debt. This is in an effort of having the creditor to forgive part of the debt. However, it should be noted that this option is only available to those who are experiencing financial difficulty and the loan involved in unsecured.
This program will direct that the client ceases to make payments to the creditors and instead open an account with the debt settlement company. Every month, you will deposit a given amount to that account. Depending on the amount owed, the settlement company will commence the negotiation process. If an agreement is arrived at, you will hand over the money from the account to the creditors. As one considers reaching out to the best debt settlement companies, it is important that you know that this program comes with its advantages and disadvantages.
Some of the best debt settlement companies that might be at your disposal include;
1. National Debt Relief
This debt settlement company has proved its value and thus been deemed as one of the best debt settlement companies. It is highly praised as it has helped people by reducing their debts by up to 49 %. In addition, their customer service is excellent because they have representatives who can promptly take clients through what the program is about.
Their website has been acknowledged as being very informative as it includes all the vital information that can help a potential client to make an informed decision. Also, clients who get into a program with this company are in a position to keep track of their progress through a dashboard. It is important to note that this company only operates in 41 states. However, its accreditation with the IAPDA and AFCC goes a long way towards proving that it deserves to be among the best debt settlement companies.
2. Freedom Debt Relief
This company features among the best debt settlement companies because of their fantastic customer services. Not only is it one of the biggest debt settlement companies but also it has been around for more than a decade. Given the nature of the relationship between these companies and a client, it is important for a client to identify a company which has excellent customer services. This is exactly what Freedom Debt Relief provides. A major benefit which associated with this company is the instantaneous responses to inquiries. The representatives who are involved also give accurate information as they undergo a three-month training before they start interacting with customers.
Additionally, those under this program are provided an interactive Client Dashboard from where they can learn about the progress that is being made as to the settlement of the debt. This company is also accredited with the Better Business Bureau and is operational in more than 30 states in the USA.
3. The New Era Debt Relief
This is definitely in the category of the best-known debt settlement companies as of now. A unique feature that it has is that a representative is attached to each client that the company has. This is in an effort to achieve a more personalized and efficient customer service system. The representative is charged with the responsibility of keeping the client in the loop with what is happening regarding their debt settlement.
Further, this company is well known for being transparent with their clients. They have a section which highlights the truth on issues such as the fees that will be charged and the amount of debt that is likely to be reduced among other important details. This transparency has contributed a great deal towards getting this company on the list of the best debt settlement companies.
As one considers this option, it is important to be aware of both the pros and the cons that come with it. To begin with, indeed this option does have its benefits. The biggest of which is that one stands a chance of having part of their debt reduced. Also, you can reduce the amount that goes towards paying the loan from what it currently is to an agreed amount with the best debt settlement companies.
However, the disadvantages include having to pay a fee to the debt settlement companies for the services that they have rendered. One should also be aware that by doing a debt settlement, it will have some negative effect on their credit score. This is because your debt will be declared as being delinquent when you stop making payments to the creditor.
A client’s credit score might lose points as a result. In addition, the IRS will consider the forgiven debt as income and thus subject it to taxation.
In conclusion, there are various companies which offer debt settlement services. However, those who are looking for quality services, are advised to hire the services of among the best debt settlement companies.