As consumer debt continues to rampage, debt relief is fast becoming a major concern for many Americans. In 1999, American’s made $ 1.1 trillion worth of credit card purchases. In 2001, US credit card debt was around $ 690 billion. Unfortunately, in today’s unstable economic conditions, many Americans are forced to turn to credit cards as a way to expand their income. Consumer debt is at an all-time high and Americans need to know what they can do to get out of debt. Consumers often seek the services of professional debt settlement companies to help them regain control of their finances. However, before making such an important decision, it is important to fully understand who you are doing business with.

The most important thing you can do when deciding to get help with your debt problems is to be an informed consumer. It is absolutely essential to do your research. Don’t rush into things; This may cause more harm than good. Before signing up with any debt settlement company, be sure to ask the following questions and consider their responses:

* Is the debt settlement company you are considering accredited by the Association of Settlement Companies (TASC)? Personally, I would not consider doing business with any debt settlement company that is not. TASC accreditation reduces risk to consumers and provides overall confidence because the member company has been independently evaluated by a third party for its competence and ability to perform. Any company that truly has the best interest of the customer in mind will take the time and make the effort to do so. While the process can be long and difficult, in the end, it is in the best interest of the consumer and the business.

* How much does the service cost? When choosing a debt relief solution, it is important to ensure that the program is affordable and realistic within your monthly budget. If you can’t afford the program and sign up anyway, you’re only causing yourself more financial problems in the long run; however, if you can meet the monthly financial requirements of the program, debt settlement is a great form of debt relief for unwanted credit card debt. Most people do not realize that debt settlement is the fastest and least expensive form of debt relief outside of bankruptcy.

* Does the company offer any kind of service guarantee? If so, what is the warranty? If a business cannot settle its debt, it should never have to pay a fee, or the fee must be fully repaid. Also, steer clear of any debt settlement company that promises you a quick solution to your debt-related problems or tells you that debt settlement will not have a negative effect on your credit. By enrolling in a debt settlement program, your credit score will likely get worse before it gets better. This is a lower price to pay for receiving a substantial debt settlement and not having to file for bankruptcy! However, it is important to realize that if you want to maintain a “good credit rating,” you must pay your bills on time; anything else will hurt your credit score.

* Does the debt settlement company you are considering have IAPDA certified debt arbitrators? IAPDA certified debt arbitrators possess a solid understanding of the laws that govern the debt settlement industry and fully understand your current financial situation.

* Does the debt settlement company you are considering offer any bankruptcy assistance in case debt settlement doesn’t work for you? For example, some debt settlement companies will offer reimbursement for some of the program costs to help pay for a bankruptcy attorney of your choice. Of course, the funds would have to be paid to a licensed attorney and not directly to you. Again, a company that does this will likely have your best interests in mind.

* Is the debt settlement company you are considering owned by the local Chamber of Commerce? If so, is the Chamber an accredited member of the United States Chamber of Commerce? This type of affiliation will help ensure that the company conducts business properly.

* Is the debt settlement company you are considering a member of the Better Business Bureau? Really do not care. Unfortunately, BBB does not yet recognize debt settlement as an industry, because in my opinion the credit card industry and its agents, the credit counseling industry, misreported it on the effectiveness and success rate of its participants. In fact, in some states, BBB has not allowed debt settlement companies to even join BBB, and BBB has a rating scale that is biased to give debt settlement companies a D or F rating only for the industry to which they belong. . This is a disservice to consumers, because it does not allow them to distinguish between reputable debt settlement companies and those that are less desirable. For consumers who are genuinely interested in doing research to select a qualified debt settlement company, a great resource is the Association of Settlement Companies Association website, which is http://www.tascsite.org TASC is the watchdog group that enforces a strict code of standards and disclosures to its member companies. Companies are monitored through a third-party “secret shopper” program to ensure that they are consistently upholding the high standards that TASC embodies.