Plano, TX (PRWEB) January 1, 2008 -- Tom Bates, President and CEO of Absolute Debt Solutions is offering tips on how consumers can find the right debt settlement program. Bates is an IAPDA Certified Debt Arbitrator and Debt Specialist. He says many families are often desperate to get out of mounting debt and will often take the first option that comes along. He says this might not always be the best option out there.

"Just the thought of being debt-free can bring tears of relief to a family who has been under high interest payments for years," says Absolute Debt Solutions Founder and CEO Tom Bates. "Studies show that 78% of all income is paid out to debt of some type, with the major percentage of each payment going toward interest."

Bates lists the types of debt settlement options available and offers some insights:




Consumer counseling services -- These services operate by setting clients up with their own personal counselors. Only after clients have paid an enrollment fee and agreed to automatic bank drafts, will the program go into effect. The counselor then contacts the client's creditors and attempts to lower their interest rates. But, this is often only lowered temporarily. Should the client or the counselor be late in getting the payment to the creditor, that low interest rate will return to its previous high rate. Often these services appear to be non-profit, however that is most often not the case. An article from the Cincinnati Post titled "Wolves in Credit Counselors' Clothing" (April 26, 2005) found Clients of the California-based National Consumer Council, Florida-based Debt Management Foundation Services Inc. and Massachusetts-based Better Budget Financial Services Inc. paid thousands of dollars to keep bill collectors at bay, but instead clients saw their debts, interest rates and late fees increase as the three companies did little to help. Often, these services will follow up with the creditor with a letter of counsel that informs them of the client's involvement in their program and asks them the work with them, and to proffer a fair-share contribution. Ultimately, the money a client pays to get out of debt could instead be going to the counseling service.





Debt Consolidation is always a great way to bring resolve to debt as long as clients have a process in place before the consolidation to settle the debt. If there is no procedure in place to discount the amount owed, there is no real reason to conduct a consolidation loan. Lowering the monthly payment is somewhat beneficial, but the end result may not be what is desired. A simple trade out of loans does not lower the amount owed or monthly payment, and in most cases, clients are going to end up owing double what they started with. About 80% of borrowers use debt consolidations loans, bringing accounts to a zero balance, but end up owing another lender at a lower or longer rate/term. In most cases, people that go through debt consolidation will continue to use the accounts that were paid off, resulting in double the debt. The end result is, if clients have a well qualified debt settlement company that will charge a fee based on results, they should handle all the negotiations before the debt consolidation and then they are sure to come out on top.





With Fee based Debt Settlement, there are many options, and in several ways, consumers can save money. If it is a buffer or shield type, clients are always in better hands with creditor experts that are IAPDA certified and have been in the collection and or credit industry. These creditor experts understand the creditor and the individual account better than an average debt settlement company. Further, the fees charged by fee based debt settlement companies are going to cost about 15% of the total debt. So whatever is advertised, add about 15 % to their quote, and in most cases, the fee is paid up front before the job is done or even started. If they are not willing to give a written guarantee to perform and produce, potential clients should reconsider doing business with them, regardless of their affiliation or ratings. The old saying, "if it is not in writing, it didn't happen" applies here. The truth is, there is only one type of guarantee that will protect the consumer. When it comes time to perform the actual service, most of the money clients have saved over the months or years has gone to the debt settlement company, leaving little or no money for settlement. This method does not seem to have the consumer's best interest in mind, as the debt settlement company gets paid before the creditor. One of the largest debt settlement companies just had a class action law suit filed against it, for the practice of collecting fees but not providing services. Along with this law suit, there are over 700 BBB complaints filed for actions truly not in the consumer's best interest. Not all fee based debt settlement companies act like this; some put their client's best interests first. ABsolute Debt Solutions mission is and will always be, tocharge a erasoable rate for a job well done. If we do not reach our desired goal for an account to be settled the consumer pays no service fee for that account to be settled. This along with our entire guarantee to perform comes in writing.




For those considering debt settlement, they should consider these factors while deciding what program fits their needs:

1) First, how did they hear about the company?

2) Does the savings program have their best interests in mind?

3) Is the company willing to share its year to date settlement averages?

4) Are they experienced in both the collection and creditor industry?

5) Are they certified with the IAPDA (International Association of Professional Debt Arbitrators)?

6) Do you believe in the team that will be helping you?

7) Once you start, are you aware there is no looking back?



About Tom Bates

Tom Bates, IAPDA, CDA,CDS, is President of Absolute Debt Solutions and Absolute Credit Repair Inc. He has spent the last 13 years in the credit and finance industry, managing some of the largest receivable companies in the world. Bates has developed a program that has proven results far above the competitors. He is IAPDA Certified (International Association of Professional Debt Arbitrators). Absolute has one goal in mind, your best interest. Absolute also offers additional discounts and services for active military and those with special medical needs. For more information, please visit www.absolutedebtsolutions.biz.

Contact:

Tom Bates

IAPDA Certified Debt Arbitrator/Debt Specialist CEO

Absolute Debt Solutions Founder & CEO

Absolute Credit Repair Founder

1-877-255-5705

tbates@absolutedebtsolutions.biz

http://www.absolutedebtsolutions.biz





Tom Bates IAPDA Certified Debt Arbitrator/Debt Specialist
CEO, Founder Absolute Debt Solutions
CEO, Founder Absolute Credit Repair

http://www.absolutedebtsolutions.biz

Article Source: http://EzineArticles.com/?expert=Tom_Bates


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