The coalition of debt-settlement companies (Consumer Credit Rights Campaign) has tried to help this cause by stating that there are some very good companies out there that offer an effective and legitimate option for consumers who are simply unable to fully repay their debt. 

 

But which of these debt relief companies can a consumer really rely on? Well, FunNewJersey.com has done extensive research and we have found that there are surely more than just a hand full of reliable debt relief companies out their. Our local geo-targeted research has found a gem among gems in the debt settlement field. And little to our knowledge, this NJ based company is quickly becoming one of the most widely recognized reputable debt settlement companies nationwide. That company is Premier Debt Help.

 

To re-cap. In a nutshell, here is what you need to know about choosing the right debt relief program.

1. Make sure that you are not getting charged any upfront fees. The really good legitimate debt settlement companies will build their fee into each settlement (but only after it is settled) so that you won't even hardy notice it. Make sure that you get it in writing that the company that is offering you the debt relief program agrees to only charge you if it successfully renegotiates, settles, reduces, or otherwise changes the terms of at least one of your debts. This is mentioned in PART ONE OF OUR 10 PART DEBT RELIEF GUIDE.

2. Make sure that there is a written settlement agreement, debt relief plan, or other agreement between you and the debt settlement company. Make sure you fully understand how the program works and how your creditors will get paid during the debt settlement process and how the fees will be paid to the debt settlement company. Make sure you as the consumer agrees to all terms.
 
3. Make sure that the debt settlement company will set up a dedicated account (that you will have full control over) and make sure that account is maintained at an insured financial institution. Make sure that you control the funds completely and are able to withdraw funds if need be without penalty and that the debt settlement company has no control or affiliation with the account. 

4. Make sure that the debt settlement company discloses everything about their services and that you fully understand the debt relief program completely. It is important to note that the debt settlement company by the new rule of the FTC must tell you the exact potentially negative consequences of you going through their program. They should warn you that the debt settlement process may affect your credit score and there are still chances of you getting sued. Understand the pro's and con's before committing yourself to anything.

5. Lastly, remember that the NEW FTC DEBT SETTLEMENT LAWS are there for your protection and that these rules prohibit any misrepresentations from your chosen debt relief service. The company you choose should be able to provide you with the cold hard facts about their service. Some great questions to ask them are... "What will happen in the short term to your credit, what are their company success rates, what are their drop-out rates, are they making a profit or are they a nonprofit service"?

 

OK, so now that you have a better understanding of how to choose a debt relief company, lets move on to part 4 of our 10 part debt settlement guide.

 

 

Part 4 - Learn the difference between debt settlement, debt consolidation and debt counseling. Learn which is the right choice for your unique situation.