What is the counselor’s experience with someone in your situation – Like most things, circumstances vary widely for each individual situation. This being the case, you should seek the debt relief company or service that is most experienced in dealing with clients with your background. Do they have established relationships with your creditors? What do they know about your particular state laws (this is particularly important for debt settlement)?
What is the specialist’s track record – Can they supply you with evidence of successful completion of one of their debt management plans? In the case of a debt negotiator¸ do they have any sample debt settlement letters?
How does the expert check out with any impartial third parties – There are trade associations that many debt reduction professionals can be a part of. In the case of credit counseling, the leading trade organizations are the National Foundation for Credit Counseling (NFCC), the Association of Independent Consumer Credit Counseling Agencies (AICCCA) and the American Association of Debt Management Organizations (AADMO). For debt settlement, the leading trade organizations are United States Organization for Bankruptcy Alternatives (USOBA) and the Trade Association of Settlement Companies (TASC). If a company is not a member of one of these trade organizations, you can also check out their track record with the Better Business Bureau (BBB). If they have a lot of complaints or are not members, they are best to be avoided. Unfortunately, the debt consolidation arena is filled with “fly by nights” and companies that may not have your best interests in mind. To get matched with a pre-qualified and legitimate provider of debt help, simply fill out a form today!
Debt Mediation Versus Personal Bankruptcy
Using a debt mediation expert is usually the last step someone has before filing personal bankruptcy. The advantages for both parties is clear: 1) the creditor recovers as much of the bad debt as possible given the consumer’s personal financial situation and 2) the consumer preserves their long-term credit and assets from the devastation of bankruptcy. Through debt mediation, also known as debt arbitration or negotiation, creditors will in some cases agree to reduce the debt that a consumer owes. Other than bankruptcy, this is the fastest way to pay off debt since you do not pay the full balance.
Unfortunately, mediating your debt can also affect your credit score negatively, although not for the longevity or severity of filing bankruptcy.
Should I Use A Lawyer Or A Debt Professional
When deciding on whether to use an attorney or a debt professional, one should consider the nature and complexity of their debt problem. If your debt is not being collected by a law firm licensed in their state, then chances are your problem is fairly routine and can be better handled by a debt expert. In this instance, the most important factor is having the funds available to pay off your debt, and unfortunately, most lawyers require hefty upfront fees in order to get started. If your debt is being collected by an attorney representing one or all of your creditors, then perhaps a lawyer can better assist you. That being said, if it is clear that you owe the debt, then even at this point hiring an attorney won’t help you resolve your bad debts. Unless you have a legitimate defense, then hiring an attorney to deal with your debt is a costly and oftentimes ineffective solution.
Let PayingPaul.Com match you with a pre-qualified and leading debt management firm to help you resolve your debts without filing bankruptcy. It is as simple as filling out a form, and you can be contacted within 24 hours for risk and obligation free debt advice. Start today to learn about your options and get help deciding what route is the best way for you to get out of debt.