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Franklin Debt Relief, LLC is a member of (TASC) The Association of Settlement Companies. This trade association has developed a standardized industry disclosure for consumers.
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Debt Settlement Company Call Today: (877) 274-1260 |
Learn about our debt settlement company |
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Advice When Choosing a Debt Settlement Company Debt settlement involves negotiating with creditors to lower the amount that a consumer owes. When done properly, a debt settlement company may be able to reduce the balance owed by its clients by up to 50 percent and have them out of debt in as little as 12 to 36 months. For consumers with overwhelming credit cards, medical debt, personal loans, repossessions, or collections accounts, a debt settlement company can provide tremendous financial and emotional relief, but on the same token, when done poorly, a consumer can end up in worse position than when they originally sought debt relief. The following are series of questions to consider when choosing a debt settlement company. Keep in mind, that even when a settlement company does in fact properly service a consumer, this does not guarantee a successful program. Results do vary. Is the Debt Settlement Company being Inquisitive about your Recent Account Activity? There are instances when creditors will refuse to negotiate an account, and many of these cases occur on accounts that have had large recent balance transfers, cash advances, large purchases, or a recent loan. In other words, if you withdrew a lot of cash from your credit card and then promptly enrolled in a debt settlement program, it is likely that the creditor will refuse to offer any settlements. The same is true with large recent balance transfers and large purchases. In most cases, credit card companies would rather settle an account than risk forcing someone into bankruptcy, but if they feel the consumer has been fraudulent in their business with them, there's a good chance that they will spurn any settlement offers to make an example of the client. On the same token, even if the balance transfer or cash advance was over 6 months ago and you've made several payments since then, it will still increase the settlement that the creditor is willing to accept. It is extremely important for a debt settlement company to be thorough during the approval phase of a client's program because it can have effects down the road.Is the Debt Settlement Company being Upfront about the Potential Downsides? This should go without saying---any debt settlement company that does not mention the potential credit impact and the possibility of legal action associated with their program should be avoided. Some debt settlement companies make a point to discuss the potential downsides of the program, but there are some that value the sale over having long-term satisfied clients. A reputable debt settlement company will make a point of disclosing the potential downsides.Is the Debt Settlement Company Putting you in a Long Program? The only way to avoid legal action on past due accounts is to settle accounts before they ever reach that stage. As a rule of thumb, clients should avoid debt settlement companies that are pushing them into programs longer than 33 months. Even then, one should always strive to pay off their debts as quickly as possible. Not only can this reduce the chances of a lawsuit, but it will allow you to start rebuilding your credit sooner rather than later.Is the Debt Settlement Company Allowing you to Keep a Large Account out of the Program? This goes in line with the first question regarding instances when a creditor may refuse to negotiate. Creditors may willingly engage in negotiations with debt settlement companies when they feel the consumer has not been fraudulent in their dealing with them. Similarly, the creditors want to see that the client is not showing preferential treatment to another creditor. In other words, if a client is remaining current on an account with a large balance, the creditor may refuse to negotiate on the grounds, "If he or she can afford that big account, then they could afford to pay us back."Has the Debt Settlement Company Asked if you Filed Bankruptcy Recently? If you've filed bankruptcy in the past 7 years, then a creditor can theoretically refuse to negotiate since you have no other alternative but to pay them back in full. This tends to happen mostly to consumers who have filed within the past 3 years, but a thorough debt settlement company will investigate everything in order to ensure that they are enrolling a consumer who has a decent chance of obtaining settlements. |
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