Credit card debts are unsecured loans and have a very high rate of interest.
Hence if a debtor ends up with huge credit card debts, it is even more difficult to become debt free than it is with other types of loans.
Hence, it is best to hire the professional services of a settlement company.
But before hiring a company it is good to do some research because there are many fraudulent companies which falsely convince the consumer that they have reached a settlement with the creditor.
The consumer stops making payment and into litigation with the creditor.
A genuine settlement company will always avail a written agreement from the creditor.
They provide the debtor with provable facts before advising them to follow the settlement agreement.
Before deciding on a company it is always best to study their website and make a call to their call center.
This usually gives an idea of the kind of services they provide and the quality of their customer service unit.
Another fact a debtor should check is to see whether the settlement company is a member either the Association of settlement companies or the United States organization for bankruptcy alternatives.
An established company will surely be a member of either one or both of them.
Other facts one should check include the payment criteria of the company.
Usually a settlement company will take 10% or less of the money they save a debtor.
The company should be rejected if the fee is too high or too low.
Moreover, most established settlement companies provide free guidance on budget management.
They also provide guidance on how to increase savings and avoid debt in the future.
If a company does not provide these services, it is better to choose another one.