How Successful Are Debt Settlement Companies?

Debt is a topic that not many people are willing to talk about. But, when your debt starts to wreak havoc on your entire life, then you need help. And this is where debt settlement companies like Powell Associates Ltd come in to help.

What is a debt settlement company? This is a company that negotiates on your behalf with creditors to try and get them to reduce the money you owe, especially on unsecured debt. However, this isn’t an option for debts like student loans, house foreclosure, or a car that has been repossessed. 

But, how successful have these companies been in settling debts on behalf of their clients? Let’s take a look.

The Success of Debt Settlement Companies

When it comes to debt settlement, there has been notable success in using debt settlement companies to get rid of debts. Some companies have even reported a 50% debt reduction for their clients.

Despite all the success, there are still several companies that aren’t that successful at negotiating with creditors. So, how do you separate the wheat from the chaff?

Here are several factors you can use to determine if a debt settlement company is successful.

Excellent Turnaround

One of the fundamental foundations of how well a company performs is its service turnaround time. Some debt settlement companies have been known to take up to five years to help their clients settle their debts. And for someone in debt, that is a lot of time.

A successful settlement company has a track record of completing the job promptly. The company’s excellent turnaround is because of its already established relationships with financial institutions. And thanks to these relationships, settlement negotiations can be expedited faster.

Debt settlement companies without these connections will take longer to settle, which means you still have to continue paying your debt as they try to negotiate with your creditor.

No Upfront Fees

The reason why you turned to a debt settlement company is to help you reduce your debt payments by settling on a payment option that works for you. Imagine having to part with the money you need to pay your debts even before negotiations happen? 

Successful companies never charge their clients upfront fees. They get their payment after the negotiations are complete. For example, if you owe a creditor $1000 and the debt settlement company negotiates it down to $6000, you will have to pay the settlement company at least 25% of your cumulative debt, that is $8,500.

End-to-end Service

Most debt settlement companies tend to pass or sell your account to different companies for them to handle your settlement. And when your account is passed on to another party, that only means that the company you subcontracted has no control over the negotiations. They also have no control over your debt.

Successful debt settlement companies offer their clients end-to-end services. This means that they ensure that your case is handled in-house from beginning to end by a team of experienced debt specialists.

Expert Financial Teams

For any debt settlement to successfully negotiate with your creditors, they need to have a team that’s completely familiar with every procedure and protocol. New debt settlement companies may not have the experience to negotiate better deals for their clients.

Successful companies have several years of experience and a team that ensures they get their clients incredible deals. So, when looking for a debt settlement company to help you negotiate for a lower debt settlement plan, always go for a company that has amassed a reputation for solid settlement negotiations.

No Add-on Fees

There’s nothing quite disappointing than working with a company that charges add-on fees after making your payments. The add-on fees are meant to pay for signing fees, administrative fees, and consultation fees and among others. And this is what most debt settlement companies charge after the payment fee is made.

Successful debt settlement companies only charge settlement fees. And this settlement fee isn’t paid until your debt is settled, making life much easier for you.

So, if you’re knee-deep in debt and you don’t want to drown from all payments you have to make, why not try acquiring the services of a successful debt settlement company. With their help, you can consolidate your debt and make the repayment process much easier.

However, ensure that you don’t just go for any company. Go for a debt settlement company that values you more than the money. Working with a company that values its customers guarantees that you to get the most out of the negotiations.