Choosing the ideal debt management program to suit your particular debt issue is not easy. There are so many companies and agencies with false claims and promises that you end up being too wary and perhaps a little skeptic on how the legit companies can actually help you lose your debts in just a few simple steps. Another thing that bugs you is that even if you have found a list of legit companies specializing in managing debts, how do you know which one is the right one for you?

Before you decide to engage a debt-help company to assist you with your financial problems, you should first know the considerations of good debt management programs. Based on the guidelines, you will at least have the general idea on what you should expect to gain from these agencies or companies. Bear in mind that not all companies will be able to fulfill all the considerations but the rule of thumb is that a good program should be clear, simple and does not make you feel uncomfortable when signing up for it. The guidelines in choosing the best debt management program are as follows:

1) You should always look for debt management companies that are licensed, registered, certified and accredited by relevant government bodies such as the Federal Trade Commission (FTC) or the Better Business Bureau (BBB). Some companies claim to be non-profit but don’t be fooled into thinking they won’t be charging you certain fees because they will.

2) Transparency and clarity are the characteristics of a good program. No hidden agendas or surprises. The company’s representatives should be able to answer all your questions without seeming like they are hiding anything from you. If you do not understand anything at all, ask. If they are reluctant to answer your questions, they are likely hiding something and will probably not disclose certain information before you sign up for their program. That is a sure sign that you should just up and leave.

3) No debt management program service should start making suggestions or giving you fees quotations before even looking at your credit statement or your financial background. Companies that do that are merely interested in making money than actually helping you manage your debts and eventually free yourself of them. A good debt management program advisor will definitely ask to see or find out more about your credit status, large purchase activities, your list of creditors, interest rates as well as minimum payment amounts. It is only based on these vital information that they will be able to assess the extent of your financial problem and come up with a plan to help you.

4) If a debt management company refuses to give you any information in writing, you should prepare to walk out the door. Nowadays it is very important to get everything in writing especially when it comes to fees and additional charges as people can simply promise anything verbally. You don’t want to be caught off-guard when they charge you with a fee that is not listed in their fees and charges column. A good debt management company will be more than happy to give you a written version of their program in order to help you understand it better.

5) Personal credit information is private and confidential. You definitely do not want any information about you and your credit status to be leaked out to any party without your consent. Ask about privacy policy and the necessary steps the company will be taking to ensure that your information will be safe-guarded and not given to any other party without a written consent from you.

6) Debt management companies will definitely charge you for their services but a good one will not overcharge you and they will not surprise you with hidden fees as your program progresses. Get their representative to clarify all the fees and charges that have to be borne by you in writing with full disclosure to avoid future disputes.

Now that you know some of the considerations of a good debt management program, you can easily spot the bad ones from the good ones. If need be, you can even quiz them on terminologies such as debt management consolidation, debt settlement or home equity loans and see if they can differentiate all three terminologies. If they can’t even do something as simple as that, how are you going to trust them with something even more complicated like your debts?

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Category: Finances
Keywords: debt management, debt management program service, debt management consolidation