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Why Would You NOT Want to Work With a Debt Settlement Company to Reduce Your Debt?

Posted By:  |  September 3, 2015  |  0 Comment(s)

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BestDebtCompanys.com (BDC) released a new survey about why people choose not to work with debt settlement companies to lower their overall debt. This survey provides a look at the variety of reasons people want to settle debt on their own.

The survey, which had 1,000 respondents, asks the question: “Why would you not want to work with a debt settlement company to reduce your debt?”

Here are the following responses with their corresponding percentages:

  • I don’t have enough debt to need a company-42 percent
  • I don’t trust debt settlement companies-29 percent
  • I don’t know what these companies do-13 percent
  • I want to get out of debt myself-13 percent
  • It takes too long to settle my debt-3 percent

The majority of respondents, 42 percent, felt that they did not have enough debt to need a debt settlement company. Most debt settlement companies require a minimum debt of $10,000 to qualify for help. It seems people feel they are on top of their finances are do not require assistance.

The next highest answer was “I don’t trust debt settlement companies” with 29 percent. This response helps portray the lack of trust people have with debt settlement companies.

With the second most responses, lack of trust with debt settlement companies is clearly an issue that is not going away anytime soon. The BDC team sees this as an opportunity to help show people the companies they can trust when it comes to their debt.

BestDebtCompanies.com provides unbiased reviews of over 145 companies in the debt industry. These reviews, based on our ranking criteria, combined with real user comments, helps consumers get a better understanding of each company.

The BDC team stands behind each company they recommend and know potential customers will be able to get on the right path to settle their debts.

BestDebtCompanys.com strives to provide customers with unbiased reviews and allows users to have a voice.

Poll

  • How important is it to you for a debt consolidation company to offer financial education resources?
  • Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
  • Negotiates with your creditors on your behalf.
  • Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
  • Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
  • Combines all your debts and creditors into one monthly payment.
  • Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
  • You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
  • Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
  • Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
  • Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
  • Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
  • Borrowers can receive funds from their loan within only a few days.

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