How to Hire a Debt Management Firm:
4 important Tips
Individuals in debt who wish to make use of the services of a debt management firm should do research before committing themselves. An unscrupulous debt management firm can harm a debtors interests in some ways, so make certain to keep following 4 things in mind before hiring a debt management firm.
1. Avoid any agency that calls you by phone or sends you spam:
Most debt management firms advertise in the yellow pages or on the net, but don't over-aggressively solicit clients. Therefore, there's a good chance for any company which does so isn't on the level. Debt management companies that follow a chilly calling policy or send unsolicited emails will usually not be ready to provide any solid references. Most of these companies don't even keep a reserve fund, which is a guarantee for the debtor that his creditors will be paid.
2. Non-profit agencies don't necessarily offer better service:
First, not all non-profit debt management firms offer their services free; some firms charge to fifteen of the debt amount. Being a non-profit organization doesn't make a debt management firm a better and more efficient service provider than those that charge for the services. In fact, companies charging for their service are under an obligation to free their clients of debt as efficiently as possible because they're making a benefit from their work and their profitability is directly linked to their credibility and reputation in the market.
3. Never part with credit card information on the phone:
A reputed and honest debt management firm will never ask you to provide your credit card number or bank information on the phone. this is because they understand that callers can be impersonated; moreover, the increase in online frauds is reason enough for people in debt to be extra cautious when looking for debt management firms. Debt management companies that are acting in straightness will never ask an opportunity or an existing client to part with sensitive information of any kind over the phone.
4. Don’t believe anyone who offers a deal that’s too good to be true:
Often debtors come across debt management deals that promise to reduce their debt by half in a short time. This rarely happens; however, the debtor does find yourself paying high fees and a considerable upfront amount to the debt management company. Such companies also discourage debtors from communicating with their lenders; this is never a good idea and invariably leads to a negative impact on the debtor's credit rating. If a debt reduction company promises to offer more than some interest reduction and counseling on getting out of debt and staying debt-free, the claim should ideally not be taken at face value.
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