Any good negotiator knows that he has a greater chance of winning an argument or get a real nice settlement for his client if he knows what leverages he can put on the table. This holds true even if you are thinking of cutting a deal with a debt negotiation firm.
The Better Business Bureau warns that while you may be needing help in settling your debts in the least painful way, there are several firms out there that are out to make you bleed more money. In fact, there was once this company that ripped off 78,000 consumers a thousand dollars each, and failed to help them in any way. To prevent this from happening to you, make sure that you are aware of the red flags.
They Immediately Offer Debt Negotiation
If you are being pressured into taking an option, without even providing them information about your financial hardship, they might be working hard for their commission. At the same time, there are many options that you can do by yourself, and they are as simple as talking to your creditor and offering to pay the minimum amount each month so that your account would not be written off.
Beware of debt negotiation firms who do not seem to care about your interests, because you are going to pay them fees anyway. Only hire the ones who make a careful review of your assets, and would explain to you the pros and cons of the numerous options that you have to settle loans.
They are Charging You Upfront Fees
A debt negotiation firm is trying to rip you off the hardest way possible if they are charging hefty fees upfront for their services. Here’s your leverage – you know that it is actually up to your lender to enter a negotiation, and if you were unlucky, they would refuse to cooperate. At this point, you know that your money would be going nowhere.
It is okay to hire a company that charges upfront fees if they are using it for reasonable expenses for paperwork, which should not cost that much since you are the ones who would be providing all the references that they need. It would be also helpful to tap an agency that would offer you a money-back guarantee if they failed to give you a settlement.
They Are Not Found Anywhere
Great debt negation firms are often found by outstanding lawyers that have great experience in closing settlements in and out of the courts. At the same time, they are agencies that are aware of how important accreditation is, and they would be the ones that would have a physical office where it is legal for citizens to have an agency to negotiate in their behalf. At this point, you should know that you should only hire companies that are located in your state. Steer clear of companies that are offering their services from the outside – they may not have much authority on your own state laws.
As a rule, only hire an agency that are properly accredited, and have a strong background on debt settlement and other options that they should offer, such as tax relief and bankruptcy filing. That would show that they can offer the best leverages when it comes to getting a lender to enter a negotiation.
Business debt negotiation can also benefit your company by freeing up valuable cash-flow.