There has been a lot of buzz lately about “debt relief” and the companies that provide this service. Is it legitimate? Are the companies actually Canadian or out of the United States? Does the program really work? Why are actors talking about a Consumer Relief Program?
With so many debt relief companies advertising their services, which one can the indebted Canadian trust? Here are some pointers to consider when choosing debt relief:
- Is the company Canadian? Do they have a legitimate corporate office in Canada? If the company does not originate in Canada, why go there? What makes you think they won’t up and relocate back to the United States if the business fails? Trust your roots, and stay with a Canadian company;
- Is the debt relief company really able to operate in Canada? ;
- Does the company offer a free financial assessment? Only after a careful analysis of your finances has been completed by a professional firm can you make an informed decision. If you are required to pay for such an analysis and decide not to do business with the company, you’re not any better off.
- How long has the debt relief company been in business for? Is it just starting up or have they been doing business successfully for years? Do your research and look up how long they’ve been around. Longevity within an industry suggests the company’s viability and strength.
- Now, let’s talk about fees. All credit counseling , debt settlement and debt relief companies will charge a fee. Each operates as a business, and each requires a fee for a service. Now, how that service is provided sets the reputable companies apart from the rest. Here are some questions to ask the company:
- What is the fee and how long do I have to pay it?
- When will you start negotiating with my creditors?
- Does the process ensure that all debts are considered?
Some companies will not start negotiating with creditors until the member has accumulated a sizeable sum in fees. In the meantime, creditors will be in the dark as to where their payments are and collection agencies will contact the member without any recourse from the debt firm that is representing the member. Reputable debt relief companies will immediately start the communication and negotiation process with creditors upon the member’s program commencement. They will negotiate with strength and authority by initiating communication with creditors and ultimately a repayment plan with the member’s best interest in mind.
What if you start a debt relief program, and you experience a life changing event that prevents you from affording the program fee? Whether it be from divorce, loss of a job or just plain inflation, such a change can cause further stress on your already troubled finances. Does the debt relief company offer flexibility in paying your program fee? Some Companies will drop you from the program and you will find yourself, once again, at the mercy of the creditors and collection agencies. This is something you need to take into consideration before signing up.
More tips are to come on our OCCA blog! For now, I invite you to watch a broadcast concerning debt relief and how one company is making the news.
Video link to CHCH Square Off : http://chch.com/index.php/home/item/7997-debt-relief-dilemma.
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