If you are thinking about working with a debt settlement company to negotiate or settle your debts, there are some essential questions you should ask them before you sign up.
1. What are your accreditations?
Any company you choose should be a member of an accreditate organization. If not – Red Flag!
PleaseReduceMyDebt, LLC is a proud member of the following organizations:
United States Organization for Bankruptcy Alternatives (U.S.O.B.A.) - Mission: To represent the debt negotiation industry by creating state specific agendas and to advocate for fair regulation and protection of consumers.
IAPDA - PleaseReduceMyDebt, LLC requires all of our Debt Arbitrators to be accredited through the IAPDA, the International Association of Professional Debt Arbitrators * Tested and certified by Arbitrain
And has an A- rating with the Better Business Bureau
2. What are your fees?
The majority of fees should be based upon performance and results. Many companies charge a flat fee based upon a percentage of your debt amount. Their fees are collected in the beginning months of the program and are collected even if no settlements are completed. If fees are based upon a percentage of the debt and not tied to results – Red Flag!
Our only fee is a $49.00 a month admin fee
3. Are you being paid a commission?
Salespeople may stretch the truth or leave out vital information if they are paid on commission. If they say yes – Red Flag!
No, however we may receive a bonus based on performance
4. Do you have a money back guarantee if I change my mind?
Don’t accept anything less than a full 30 days. Don’t be pressured into making a decision you can’t reconsider. Anything less – Red Flag!
We have a full 30 day refund policy, and after you may still cancel minus any ammount paid out to your creditors.
5. If I have faithfully made my payments for one year and you haven’t settled any of my debt, how much money would I get back if I decided to quit?
Many companies charge excessive fees whether or not any of your accounts are settled. If fees are based upon a percentage of the debt and are not tied to results, the company will probably refuse to refund any of your fees – Red Flag!
We guarentee to negotiate your debt to 55 cents on the dollar (a 45% percent savings) and usually we start to settle individual accounts after 3 - 6 payments
6. How long have you been in the debt settlement business and how much debt have you settled?
Many companies don’t settle much debt at all, and young companies have very little experience. If the company cannot provide proof of their experience – Red Flag!
We have been doing debt settlement for over five years and are the best in the business, and have had more than 210,000 customers
7. Can you stop my creditors from calling me?
It is not possible to stop all creditor calls. If they say they can – Red Flag!
We will send cease and desist letters, but the less than moral collection companies may still call, we also provide you with letters to send those companies that continue to call. Most reputable companies will stop calling with in 30 - 60 days
8. Will you be making monthly payments to my creditors?
Settlement companies do not make monthly payments to your creditors. If they claim to do so or if they give you the impression that they do – Red Flag!
No we settle your debts in full one at a time as the funds in your account build up.
9. Can I get sued?
The answer to this question is “yes;” it is a possibility. If they say anything to the contrary – Red Flag!
Yes, but once we notify your creditors that we are representing you, most will not want to spend the extra money in court costs
10. Will this have a negative effect on my credit report?
The correct answer to this question is “Yes.” All debt management programs will have a negative impact on your credit report. If they say anything to the contrary – Red Flag!
Yes you do need to take one step back, to take three steps forward. Unlike most companies, we do negotiate with your creditors to show your account as settled in full at settlement. So by the end of the program your score will approve, and your debt to income ratio will be much better.
11. When can I expect my first settlement?
Your first settlement should be made well within the first 12 months of your program. Any longer than 12 months – Red Flag!
It will depend on your peticular situation, but we usually begin to settle once you have paid between 3 and 6 payments.
12. Can you tell me exactly how long this will take and exactly how much this will cost?
Debt settlement is not an exact science, and there are too many variables to quote exact time frames and figures. Many companies will tell you anything to get you in the door. Any attempt to provide exact information would be a Red Flag!
We will design a program specifically for you between 1 – 4 years depending on the ammount you owe and the monthly payment you can afford.
13. Are there tax consequences I should be made aware of?
The correct is “Yes.” The IRS considers forgiven debt to be taxable income, though you may be able to get the taxes waived if you can show the IRS you are insolvent. This should be explained. If not – Red Flag!
Creditors may report the amount you save as income. Check with your tax advisor, and file form 982 showing your hardship and this may be forgiven.
14. Who is holding my money while I’m waiting on a settlement?
Your funds should be held at a third party escrow company in a FDIC insured trust account. If the company tells you to save your own money or to send the funds to them – Red Flag
We put your money in a FDIC insured account with a third party clearing house (we use Noteworld an A+ rated company with the BBB) You will also have your own password to access your account online or via the 1-800 number.
Call for your free consultation or with any other questions 877-883-8384 ext 8021
