Debt Settlement Negotiation Options

Today millions of people around the world are facing growing debt problems. More so because of the recent economic depression and recession and this left many people in deep financial problems. Many people have opted for “debt settlement” as a solution to their problems.

However before placing all your trust in a company you must remember that the there are two types of debt settlement companies and making the right decision will determine whether your problems will reduce or increase. The major difference in the two types of companies is that they differ to some degree in terms of the client payment, account settlement and the fees that they charge form their customers. Now most of the companies will charge a hefty sum of money from their customers. A certain percentage of the money that you owe will be deducted as their fees and this is usually a substantial amount.


Many companies will charge this fee in the first 6-8 months of the settlement period and as such once the entire fee amount is earned the companies have little interest and incentive to be a part of the settlement. They very often let go of the settlement and many customers suffer disappointment and have to drop out of the deal. These companies are the ones that you should steer clear of. The easiest way to spot these companies is to have them specify their requirements at the very onset of the deal that is drawn up between you and the company. If you find that the company will charge its fee at the beginning of the deal then drop out of the deal.

On the other hand there are certain companies which are fair and responsible in their dealings with their clients. These companies charge a reasonable amount as their fees usually the amount that the client will save in the negotiation deal. Even in the negotiations these companies try to get the maximum rebate for their clients sometimes the percentage being as high as 50%. Such companies are clear in their dealings and also have a refund scheme. In case for some reason they are unable to see the deal to its end then they refund the entire money. This way the client does not lose out on any money due to a bad deal.

Also such companies will usually charge their fees at the end of the deal once the entire amount has been settled. Getting a good negotiation is in the interest of the company as well as it will get a certain percentage of the money saved by the client as its fees. The best way to identify the legal and reliable companies is to look at their affiliation. If you find that they are affiliated to TASC (the association of settlement companies) then they are likely to be reliable in their dealings.

Moreover these companies have to submit their records their ethical dealings to the TASC and only then are they made a part of the debt relief network. Hence it is necessary that while opting for the debt settlement policy you go for the right company.