How to Find a Debt Relief Company You Can Trust

Now that hundreds of providers are offering debt relief services online, how do you find one that you can trust? This may be easier than you think – it only takes a couple hours of research. We will provide 5 simple tips on how to find a debt relief company that you can trust.

1. Years in business. A debt relief company that has been around for a decade is better than the one that was established 2-3 years ago. They've learned to deal with different types of creditors, including banks and credit card companies. Their skill will help them develop an ideal solution for you, whether it's a debt management plan, credit consolidation, re-mortgage, bankruptcy, IVA, or something else.

2. Fees. The debt relief company that you go with may charge a percentage of the amount that goes to your creditors each month (usually 10%-15%) or charge a flat rate. Which one is better? This depends on your situation. What's important is that the company does not charge outrageous amounts of money compared to others. In general, a 10-15% fee is considered normal for this industry. One last point to be aware of: some companies take 100% of your first payment. This may be a lot of money, so do be sure to check for this.

3. Scams. A debt relief company can be a scam, but you can find that out. The usual traits of a scam are as follows: no business address, unrealistic promises, and large upfront fees. If the company that you are looking into doesn't have a physical business address, you need to be wary of them. It is easier for a company that does not disclose their business address to perform illegitimate operations. If the company is promising to eliminate three-thirds of your debt, they are likely to be bogus. Finally, if they are asking you to pay a large fee upfront, they may just want to disappear with your money and not help you.

4. Credit license number. A legitimate debt relief company will have a credit license number – this is a requirement for all debt management companies that operate in the UK. A credit license number must be obtained through the Office of Fair Trading by companies that work in the following industries: businesses that lend money to consumers, companies that offer credit to finance a purchase, debt collectors, and debt advisors. If the company that you are researching does not have this number, you can cross them off of your list. In addition, you can report this "debt relief company" to the Office of Fair Trading, and they may be punished by a fine or even imprisonment.

5. Reviews. A lot can be learned about your potential debt relief company via real consumer reviews online.