When you’re in the midst of a financial crisis, you may need to consider debt relief companies. The good news is that there are several options available, including debt consolidation loans and settlement programs. However, not all debt relief companies are created equal. It’s important to know how debt relief companies work before making a decision about which option will be best for your situation.
How Debt Relief Companies Work
Debt relief companies go through each account you owe on to see if they can negotiate lower payments with creditors and lenders. They will contact the creditor or lender on your behalf and work out a new payment plan that is more affordable for you. In some cases, the debt relief company may even be able to get them to forgive some of your debts entirely.
The process is done over the phone or sometimes through mail. The company will collect all of your debts, including credit cards, medical bills and personal loans. The debt relief company will then contact each of these creditors on your behalf and work out a plan for repayment in which you pay back only a percentage of what you owe instead of the full amount due.
The entire process is done for you. Many creditors will only work with debt relief companies and not with their indebted customers, so if you have tried contacting your creditors directly, but they are unwilling to provide any relief, then this is an option worth considering.
Freedom Debt Relief
Before you choose a debt settlement company, it’s important to do research on companies before choosing to use their service. For example, one of the leading debt settlement providers in the United States is Freedom Debt Relief. So you may ask yourself the question, “Is Freedom Debt Relief Legit?”
Based on our research, here’s the truth about Freedom Debt Relief:
- Freedom has an A+ rating with the Better Business Bureau, meaning they have answered all of their customer complaints to the BBB’s satisfaction.
- With nearly 38,000 reviews, Freedom Debt Relief’s customers have given it a 4.5 out of 5-star rating with Trustpilot.
- Freedom Debt Relief is a legitimate company that offers reputable services to help their customers create a plan to settle their debt and secure their long-term financial goals.
Staying Safe with Debt Relief Companies
While searching for the right debt relief company, there are some things you can do to ensure that you’re working with a legitimate company and avoid scams. To stay safe, try the following options:
- Ask for a free consultation. Legitimate debt relief companies will go over your accounts with you and provide some insight into how they will be able to assist you.
- Check their credentials. Credentials are used as verifiable ways of proving that a business has met certain requirements. If the credential is fake or it cannot be verified, a quick Google search can help you to identify false claims.
- Look for reviews and ratings on sites like the Better Business Bureau or Trustpilot. These sites provide feedback from real customers that have used the company’s service in the past, and so you can find out what other users have experienced and what the resolution to their issues were (if the issues were ever resolved at all).
Debt relief companies are a great option for those looking to get out of debt and start over. Most people don’t have the time, energy or knowledge needed to do it on their own, so hiring someone who can help them is often in their best interest. They can make things easier by providing you with more time as well as advice on how to get started with your new financial situation. Now that you know how debt relief companies work, you can decide whether debt relief services are right for you.