Debt - Should I Use a Debt Settlement Agency

You are watching TV and the salesman is almost convincing enough to have you question whether or not you should use an agency to help you deal with your overwhelming credit card debt. Or the telemarketers spiel convinces you that you cannot handle this situation on your own. And you wonder is using a debt settlement agency the right thing for me to doall

Some people try to muddle through and deal with their credit card debt by themselves, but all too often the dunning phone calls and sleepless nights become overwhelming and the situation does not seem to be resolving itself in a satisfactory way. So the question becomes does it really make sense to turn to an agency? Will the professionals be able to do a better job of settling your mountain of debt than you are able to on your own?

What are the benefits of turning to the professionals to bail you out of a nasty situation? First of all, you will not have to suffer the embarrassment of dealing with the account executive at your credit card company, the on-going phone calls will stop, and your credit score will begin to be repaired. Secondly, you may not have the time to research the options that are available to you; and you may not have the research skills that you need in order to identify them. Thirdly you may not have the expertise to evaluate those various options and be able to identify the long term vs. short term benefits of each of them. And finally, you may just want to get out from under and turn over the whole mess to someone you think is better equipped to handle it than you are.

Whatever your reason for turning to them, a good credit card debt settlement agency will definitely be able to help arrange better terms for you, and they may save you a lot of money along with providing you with some stress relief.

Once you have decided that is the step you need to take, the next question is how to select a good debt settlement agency?

Obviously the company whose ads promise to wipe out your debt overnight is making fraudulent promises. No one, not a debt settlement agency, or anyone else can do that.

So yes, you will need to do a little research. Call the Better Business Bureau, or speak with your financial advisor to identify a company with verifiable credentials and a decent reputation. If you know someone who has successfully been through a similar situation they may be able to recommend a reputable company to you.

Companies to avoid are those with ads that promise the moon and have a premium phone number to 'call right away!' They may be no more than a fly-by-night company with no reputation. The premium phone number should be a tip off. You may wind up paying a huge phone bill finding out that this isn't the company you can trust. Also avoid any agency which charges an unreasonably low fee but has no verifiable reputation. Be sensitive to the voice on the other end of the line too. The person you are speaking with should sound professional and not be trying to "sell" you on their program with the usual sales techniques of "if you sign up today . . ."

Once you find a reputable debt settlement agency, no matter how bad your debt is, be open and forthright about the situation. Trust is an essential component in working with any financial professional. You need to fully disclose the situation and you also need to follow their advice implicitly. No debt settlement agency will ever be able to help you if you are not ready to help yourself. You will need to follow the advice given to you and learn to practice good spending habits.