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How-to Select the Best Debt Consolidation Credit Counseling Company
In recent news, the Federal Trade Commission (FTC) has alerted consumers about illicit credit counseling. While some debt management companies offer ethical and reputable solutions, there are a plethora lawless credit counseling agencies. How can a consumer improve their personal credit by selecting a reputable credit counseling firm?
The following tips can be used to ensure consumers find an appropriate program. Here are some basic steps to follow before choosing a credit counselor:
- Verify debt management firms with the Better Business Bureau or the state’s attorney generals office. Generally, one of the above organizations will have complaints if the company practices fraudulent business tactics.
- Prior to signing the final credit counseling agreement, ask for all fees associated with the service. Obtain a list of fees, in writing before handing over debts. Debt management firms that carry excessive monthly fees or high deposits should be avoided.
- A credit counseling service should be accessible during normal business hours. Any debt management firm that contacts you through telemarketing should be suspect. (The same is true for any non-profit debt consolidation program).
- Find out how counselors are paid. If debt representatives or counselors are paid via commission, they are prone to be more concerned with their own bank accounts then customers. Pose the same question to any non-profit debt organization.
- The debt consolidation firm should offer more than debt management services. Classes on money management and budget counseling are indicators of an ethical debt consolidation program.
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