6 Keys to Hiring a Debt Settlement Company

If you come to the point where you're considering debt settlement, hiring the right company critical. Over just the past year, many debt settlement companies have closed their doors. The biggest reason for this is because last year, the Federal Trade Commission (FTC), enacted new regulation within the debt-relief industry. The new regulation was difficult for many companies to survive, and as a result, the decided to close their doors.

Imagine being a client to one of those companies, only to find that you've suddenly become a debt-settlement orphan. This is NOT something you want to happen.

I've been a debt-relief industry insider for over a decade. During that time, I've outlined 6 things you should be looking for when hiring a debt settlement company.

Here's a quick overview:

1. Experience: Up until the new FTC regulation last fall (2010), debt settlement companies were popping up like weeds. This industry is very fluid and when hiring a company to settle your debt, you're going to want to select one that's been around for a while. 
2. Education: As far as I know, every state in the nation requires any settlement company to provide you with some form of financial education. If you searched online for financial education, you'll find a TON of books available. But settlement is a unique scenario and, as a result, you'll need unique education. 
3. Disclosure: During the enrollment process of any debt settlement service (a.k.a. "sales process"), the representative on the other end of the line should be disclosing all the nuts and bolts to the settlement process. But... there are many times when this doesn't occur. Be careful if the rep on the phone tells you things like, "the settlement service will put a dent in your credit." There's more to the story and you need to know it.
4. Guarantees: While going through that "enrollment process" if you hear any indication that any one of the accounts you'd like to enroll in the settlement program is guaranteed to be settled at any specific percentage, tell them to "hit the road JACK!" During settlement, NOTHING can be guaranteed.
5. Employee Pay: A question you should be asking is whether or not the rep you're talking to is paid a commission or a salary. The difference is obvious. And... unless they tell you they're getting paid on a salary (or hourly) wage, that's a red flag. 
6. Up-Front Fees: When the FTC stepped in and instituted new regulation within the debt-relief industry, one of the major changes was the prohibition of up front fees. This means that no settlement company is able to legally assess any fees up front before they've performed. When the ink on this regulation dried, the industry experienced an exodus. The United States Organization for Bankruptcy Alternatives (USOBA.com), the oldest trade organization for the debt settlement industry, experienced a significant decrease in membership (from about 200 members down to about 70). 

The video above explains in detail each of these 6 "settlement hiring criteria." And if you'd like to contact a company that I've personally vetted that truly shines, and completely satisfies each one of them, just click here.