Looking for a debt repair program?
Searching for a management plan to help you become debt-free?
While debt management plans have pros and cons, they’re often an excellent choice for certain individuals. However, if you’re looking to choose a debt repair company, it’s essential that you evaluate it thoroughly to ensure you can trust them with your debt.
Below we’ll look at the most important things to remember when evaluating a debt management company.
1. Check Accreditation
The first thing you should do when choosing the right company to manage your debt is to make sure the company is fully accredited. A respectable company will be accredited by an organization such as The National Foundation for Credit Counseling (NFCC) or The Council on Accreditation (COA).
Make sure to check on their website that the NFCC or the COA accredits them. This is a clear sign that you can probably trust them and that they have the expertise to help you with your debt.
2. Research their Background
Besides looking for accreditation, there are other things you should check out to verify the company’s reputation as well. There are a lot of credit repair scams out there, so you need to do your due diligence.
Do some research online to see if there are any complaints about the company. The Better Business Bureau (BBB) is a great resource to check out, and any legit company will usually have a profile on the BBB and a badge on their website. Make sure you check out the BBB site to see if there are any complaints against them. If there are, you may want to keep looking elsewhere.
Additionally, when looking for debt management companies, you may want to check the United Card Solutions website which has already vetted many of the various companies for you.
3. Ask About Fees
Before getting started with one of these companies you should also find out what fees will be involved. While these companies are supposed to help you get out of debt some are not trustworthy. They’ll charge high fees that make your situation worse. This is the last thing you want when you’re working hard to get your finances in order.
Especially avoid companies that have high upfront costs and watch out for ones asking for things called “voluntary contributions.” Be sure to understand exactly why each fee exists, and if their fee structure seems excessive, it probably is.
4. Review the Details
You should also make sure to ask for a sample contract before you get started. You need to know every detail of the relationship you’ll have with the company. Review the action plan and the agreement and look over it carefully.
Don’t sign anything you don’t understand. Check every document thoroughly and make sure you know exactly what is required of you when it comes to the fees and penalties.
Also, find out about your exit options. If you need to drop out of the agreement, you need to know exactly what it will take to do it.
5. Consider a Free Consultation
You should also make sure that you make use of any free consultations that are offered and that you discuss your situation over with a credit counselor. You’ll often get a free counseling session when considering a debt company to work with.
A credit counselor can help you to understand your financial situation more fully and make sure you’re taking the right course of action. They’ll help you understand your finances, so you’ll know what you’re dealing with.
Working With the Right Debt Management Company
A debt management plan can help you if you’ve sunken too far into debt but it’s important to choose well. Remember that a debt company should be making your life better instead of making your situation worse. Be sure to follow the tips above to make sure you choose a company that you can fully trust with your financial situation.
Looking for more financial tips? Check out our personal finance blog now for more useful advice.