Choosing Debt Management Companies

So you are convinced that debt management companies can put an end to your debt problems. You may think that you can take steps in managing your own debt by making a budget. But you also realize that to get motivated and to stick to it you require the help of professional debt management consultant.

Now you’re ready to pick up the phone and call your chosen agency. But before you do that, please learn how to choose a reputable company that isn’t just interested in your hard earned money. Or, if you’re already under contract with a firm these tips can help you decide whether to continue with their debt management program or to leave and switch companies.

Evaluating Services Offered By Debt Management Companies

1. Free debt counseling and consultations. They must always offer free consultations as these credit counseling sessions will allow you to learn about managing debts without worrying how much it’s costing you. Be wary about an agency that ask you no or less questions about your finances and more questions about when you’re ready to make the payment.

2. Client management and personal information protection. There are instances that a debt management company is not suitable for you. Go elsewhere for help if they continuously convince you to join their debt management plan. Also, make sure that they have a secure system to protect the privacy of your personal and financial information.

3. Periodic reports. Check out samples of monthly financial statements that they send to their clients. These credit counseling services must give you periodic reports about the present status of your debts. Make sure that you can easily read the report and you clearly understand your financial position from such a statement.

4. Proper procedures and communication. Will you sign a contract and other written agreements? As the counselors deal with your creditors on your behalf make sure you know how they communicate with you and your creditors, especially on any action that has direct or indirect impact with your debt and credit rating.

5. Overall customer service. During the free consultations look at how the representative handles your case. Did he or she listen to your concerns and takes notes of your problems? If the organization is more into making profit than genuinely helping you, then that isn’t a good mix. Ideally they have service oriented employees so that the profit and the helping aspect should both be on the same level.

Understanding Debt Management Companies and Programs

Personal debt management can help if you find it difficult to pay off your monthly bills. Which one is better: debt management service or do it yourself? Learn some of many assistance you can expect to get from a good debt management counseling service.

If you are considering using debt management services or debt management plans make sure you understand advantages and disadvantages of debt management programs and how debt management plans affect your credit rating so you can decide whether or not it will suit your needs.

Finding Legitimate Debt Management Companies

There are many resources where you can talk to people you know and trust about their experiences with debt management services. If they have no experience working with a debt management company ask them to recommend someone who can help you.

Alternatively, ask the company if they have list of clients who you can contact and listen to the opinions of their experiences with the company. Using information from the BBB, online debt relief forums and consumer protection sites like compare advantages and disadvantages of those companies and programs.

Once you find reputable companies, request detailed quotes, which include all the fees and charges, from them. Compare the total costs with the standard cost you can get from online sources to understand the market price. Finally, negotiate with the company to reduce or waive certain fees so that it is affordable for you to pay.

These are the tips for finding legitimate debt management services and choosing the best one. If you don’t possess all the information about certain debt management companies you can always use your instincts to help you find and then choose a legitimate one.

Choosing Debt Management Companies was last modified: June 15th, 2013 by Paul Sarwana