Debt Settlement Fees
Why You Must Always Read The Fine Print Before You Sign A Debt Settlement Agreement.
A guide to paying the lowest debt settlement fees possible. Debt settlement tip 101 learn how to write a credit card debt settlement letter.
It's important to consider the debt negotiation fees and read the fine print before you decide that a debt settlement company is right for you. In fact, for some people, writing a credit card debt settlement letter themselves can be a better method than going with a company.
If you decide that you do want to go with a company, it's probably best to first do a debt settlement company review to find out if the company is legitimate and to check into the fees that they charge before you decide to use them.
Your Guide To Debt Settlement Fees
Two Ways Fees are Usually Charged
When it comes to debt elimination fees, you'll find that there are usually two ways that these company charge these fees. One great debt settlement tip is to look into how they charge their fees before you sign up with a company.
Percentage of Savings - The first way that companies may charge you is on the percentage of savings on the entire principal of your debts. If you owed $10,000 in the beginner and you were able to save $4,000, they would charge you a percentage of the $4,000 that you saved.
Percentage of Original Debts - Another way that some companies may charge you is by charging you a percentage of the original account that you submitted for them to negotiate. In this case, if you owed $10,000 and submitted this to them to help you settle, then they would charge a percentage of the original $10,000.
Make sure you find out how these charges are calculated before you choose a company. This can also help you to more easily compare companies and their fee when trying to make a wise choice.
Different Ways You Can Pay Fees
There are also different ways you can pay those companies as well. One option is to pay the amount up front. In some cases companies will take the fees from the first few payments that are made as well. Percentages of your monthly fee during your first year may be taken to pay off these fees as well.
You'll want to check to see how the company is going to allow you to pay these accounts to make sure that all your money isn't just going to fees in the beginning, which can hurt your credit.
Other Fee Information
In many cases, there are other debt settlement fees that are charged as well. Some companies will charge you an admin fee in the beginning that is non-refundable, even if you want to later cancel your account.
Many of these companies also charge a monthly service fee as well, on top of the others, which can really add up over time. In the end, you could end up paying more out in fees than the money you saved.
It's a good idea to learn more about debt settlement companies and the fees they charge before deciding that this is a good option for you.
You can visit the Better Business Bureau's website www.BBB.org and find reports on hundreds of Debt Elimination Companies.
Go to a debt settlement forum to find out more or check state and federal guidelines on these companies. As you choose your company, always do a debt settlement company review to find out just how much in debt settlement fees the company will be charging you!
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