Things are not going so badly for West Virginia, debt-wise…but neither is it doing so well. Recent reports place the state squarely in the middle financially, ranking 25th among the 50 US states. So debt relief in West Virginia is still a reality for many residents.
Some Caveats for Debt Relief in West Virginia
Those who do find themselves in financial low water and in trouble with their creditors should be careful when seeking debt relief in West Virginia, however. It would be very easy to end up owing your creditors more than you should and paying more than is fair to debt settlement companies.
Debt settlement is the new black for managing financial problems. It sounds very attractive the way some companies for debt relief in West Virginia make it sound. If you could really reduce your debt by 60% by simply leaving it all up to the company’s negotiators, than that is wonderful. Unfortunately, that’s not what usually happens.
Mechanics of Debt Settlement
To understand why it could be more costly to hire a debt settlement company than to negotiate with creditors on your own, you need to know how debt settlement for debt relief in West Virginia works. A debt settlement company requires you to put up an escrow account that they control. In the meantime, you stop all payments to your creditors, and by definition you are in default. At a certain point, the debt settlement company will start negotiating with creditors who are (hopefully) panting to come to more favorable terms, and then the debt settlement company will start paying them.
In the meantime, you most probably paid a fee upfront, and agreed to a monthly retainer while you wait for negotiations to begin and conclude. At the same time, your creditors are compounding your debt with interest and penalty charges until your debt swells beyond recognition. You could end up actually paying more than you originally owed, plus you paid someone to do it for you!
When Debt Settlement Works
But you must also keep in mind that there are companies who don’t operate precisely in that way. The best organizations for debt relief in West Virginia don’t require a fee upfront because this is against the rules of the Federal Trade Commission. Moreover, experienced negotiators know when and how to reduce your debt and get you more favorable terms, while your creditors thank you for it!
The key is to choose the right company to give you the debt relief in West Virginia you need. Debt settlement is a risky proposition if you choose to be swayed by the glowing promises of dubious debt relief companies. Outfits like the National Debt Relief will provide you with a shred analysis of your finances, suggest ways to improve your money management, and always look out for your best interests. When choosing a debt relief company, always check the background and customer reviews. Don’t get caught up in the hype, or you could end up needing debt relief in West Virginia worse than before!