So you are sure 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 simply making a budget and sticking to it. But
you also realize that in order for you get motivated and sticking to it
you require the help of professional debt management consultant.
You are now ready to pick up the phone and call your chosen debt
management agency. But before you do that, please read on to 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 the tips
can help you decide whether to continue with their debt management plan or to leave and switch companies.
Evaluating Types and Standard of Services Offered
1. Free consultations. They must always offer free consultations as
these credit counseling sessions will allow you to probe in depth 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. And as the agency
handle your most sensitive financial information make sure that they
have a secure system to protect the privacy of this information.
3. Periodic reports. Check out samples of monthly financial statements
that they send to their clients. These credit counseling services must
always 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.
Costs and Reputations of Debt Management Companies
1. Good track record. Try to do a simple background check on the agency.
Have they been around for a while with positive stories? How many
clients have they helped? Are the clients satisfied with the service
they got? Are there testimonials from satisfied clients? Try to read reviews
in non-partisan sites and check with the BBB to see if they've received any complaints.
2. Employing Experts. Debt management services are more one on one
counseling. In order for you to succeed in your debt management program,
you have to be with the best people -- a real expert. Make sure you work
with a licensed professional who really knows his or her stuff.
3. Affordable fees and charges. Get a detailed quote and make sure all
the fees and charges are included in the quote. Compare the total costs
with the standard cost you can get from online sources. Once you get the
"market price" negotiate with the company to reduce or waive certain
fees so that it is affordable for you to pay.
4. No affiliation with creditors. To avoid any conflict of interest be
sure that the debt management company isn't affiliated with one of your
creditors. The affiliation would put them in a compromising position and
they might end up working against you, rather than for you.
5. Nonprofit and accredited entity. Several states require companies to be "nonprofit"
before they're allowed to operate. Make sure they are truly non-profit
and can prove their claim that they are a nonprofit entity. Even though
the nonprofit and the accreditation status don't guarantee that they are
either better or cheaper than a for-profit service they are less likely
to charge exorbitant fees or try to take advantage of you.
These are the tips for selecting a debt management service. And 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.
