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According to recent studies, the average American household has nearly 20 debit and credit cards, with an average of $500 charge on each one; and due to the 2005 Bankruptcy Abuse and Consumer Protection Act it’s making it harder than ever for consumers to have their debts wiped out by the courts. What this means is that more and more consumers are feeling overwhelmed and helpless and are seeking professional assistance to reduce debt and avoid bankruptcy.

Choosing the right debt settlement corporation for you is an important first step to getting out of debt. Like all industries, the debt settlement industry has fraudulent businesses. While many debt corporations may appear to be similar in goals and structure, it is essential to realize that not all are the same and that some are not to fit your needs. There are debt agencies that will charge high fees and promise to lower your debt, without actually producing any results. Learning basic information about a debt corporation can help you avoid falling victim to a scam. The most import thing is to ask lots of questions.

KEY FACTORS TO DETERMINE IF A DEBT SETTLEMENT CORPORATION IS VALID:

1. The corporation should be prepared to meet your needs in an honest and efficient manner.

2. The corporation should offer free consultation

3. The corporation should have available a debt counselor or specialist, who is qualified to assess your entire financial situation and recommend the most suitable course of action for your circumstances.

4. The debt counselor or specialist should work with you hand-in-hand in developing a program that will lower your monthly burden to a single, more manageable commitment leaving you debt-free in the shortest time possible.

5. A valid corporation will only charge you according to the original balance, not the balance after all of the fees and charges.

6. Please be very cautious if a corporation claims that as a part of their services, they guarantee to stop all creditor phone calls or guarantee that your credit will not be altered.

7. The corporation should demonstrate the required business practices and standards required by TASC. TASC- Trade Association of Settlement corporations. TASC goals are to promote good practice in the debt settlement industry and protect the interests of consumers. TASC encourages debt settlement corporations to provide services of the highest standards to ensure the public and the credit industry’s confidence.

8. In order to achieve successful negotiations, the corporation should have skilled debt negotiators and settlement professionals, who are current with the laws pertaining to debt, credit and collection and represent their debtor client’s best interest during debt negotiations with creditors and collectors.

However, you should shop around to find a debt settlement corporation that is honest with proven results, and one that is the best fit for you. Make sure that the corporation offers the services that you need at terms that are acceptable to you.