How do debt relief companies work?

Every year, the debt of Poles increases. We are more willing to take out loans to achieve specific goals. There are more and more debt relief companies on the market offering debtors assistance in paying off loans. What exactly is their activity?


Loan for loan, i.e. a debt loop

Loan for loan, i.e. a debt loop

On the one hand, wages standing still or rising slowly, on the other hand, the needs for achieving a goal. This means that Poles are more eager to reach for non-bank loans, which are characterized by a minimum of formalities compared to bank loans. Some borrowers do not analyze their financial standing before signing the loan agreement. After some time, it turns out that there are the first problems with repayment on time. In such situations, some people decide to apply for another loan. This causes such a borrower to fall into a debt loop. Can this debt spiral be avoided?

Here comes the issue of responsible borrowing. We should be guided primarily by common sense, analyzing whether our home budget and financial capabilities allow us to make a given commitment. It is easy to fall into the debt spiral, it is harder to deal with growing problems.


Debt companies – what is that?

Debt companies - what is that?

Advertising slogans of debt relief companies tempt borrowers who have problems with timely repayment of their obligations. It is with them that the debtor can “free himself from debts” or “regain peace and sort out financial matters.” Debt relief companies advertise as professionals who are able to help any debtor. How do debt relief companies work in practice?

Debt relief companies appear on the Polish market like proverbial mushrooms after rain. The growing demand from debtors contributes to this. They offer assistance in the cancellation of debts, interest or reduction of installments. Therefore, many indebted borrowers see in debt relief companies the last resort. Hence the growing popularity of these entities. Are debt relief companies in fact able to help debtors?

Before answering this question, we should consider who sets up debt relief companies. Registering this type of entities in Poland is not burdened with any specific legal provisions. Therefore, virtually anyone can become the owner of such an institution. Both the owner and employees do not need to have courses, licenses or certificates confirming their qualifications. In most cases, the owners of small debt relief companies are not even people who would graduate whose studies are compatible with their business. Larger debt relief companies usually operate slightly differently. They actually include employees who are professionals, and thus ensure reliable customer service and effective handling of individual cases.


Debt relief companies – help or cheat customers?

Debt relief companies - help or cheat customers?

As in all cases, so before we decide to use the services of a debt relief company, we should carefully check it. Opinions about these entities are divided, both positive and negative opinions can be found on the Internet. In practice, however, these institutions carry out tasks that the debtor would be able to take care of himself. I am talking, among other things, about negotiating more favorable terms of debt repayment, spreading it into convenient installments, finalizing formal issues, as well as seeking other paths through which the debtor could avert the financial crisis.

On the Polish market you can find honest debt relief companies that are actually able to reliably help their client. To choose the right entity, you need to know the market and know exactly what to look for. The process of debt relief is a long process that requires the adoption of appropriate tactics. Before we choose the company whose services we want to use, we should meet with its representative who will present all the necessary details of the offer. Each case should be treated individually. It is worth finding out what exactly steps will be taken, whether there are any chances of success, whether they will contact directly the representatives of the loan company in which we took out the loan, as well as how they plan to conduct negotiations. Representatives of a debt relief company who will matter-of-factly answer our questions are certainly noteworthy. If the representative does not answer clearly, we should resign from continuing cooperation with the given entity.


Costs of debt relief services

Costs of debt relief services

One of the most important questions: how much does the debt relief service cost? Each debt relief company has its own personal price list. However, the cost depends on several factors, including the complexity of our case or the amount of debt. Usually the price of such a service is several dozen or several hundred zlotys.

There are entities on the market that collect remuneration only after the case is completed. No representative can guarantee us success. If the customer pays for the service in advance, he takes the risk and thus has to take into account that in fact the debt relief company will not give him the assistance he expected.
People who do not want to use the services of a debt relief company can always opt for a solution which is a debt loan (loan for those in debt). This product can also be used by even very indebted clients without creditworthiness.

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