Is Debt Counseling Right For You?
Doug Smith

Defined Tag: Debt Counseling.

If you are wondering if you need debt counseling, then you probably do. Don't worry - many consumers are in the same situation. It is far too easy to get and overuse credit these days, and accumulate huge bills in the process. If you are only making the minimum payments on your credit cards, have annual percentage rates (APR) near 30%, or cannot make some of your bill payments, then a debt counselor can help. Here are some tips for choosing a debt reduction specialist.

Interview several debt counselor companies. Determine up front what their fees are, including any monthly fees, and for how long you will have to pay them. After all, a debt councilor should not get your further into debt! Find out exactly what services they offer, how much they cost, and how long the service lasts. Check to see if you have to pay additional fees if you have questions or problems after the counseling sessions have stopped. Ask for a list of customers you can call to see how their debt problems were handled, and check with your local Better Business Bureau and state offices to see if there are any complaints against the debt companies under consideration.

Are the debt specialists certified in consumer debt management? If so, you may be more likely to get the help you really need. It also gives you some peace of mind that you are dealing with a true debt professional. Try to choose a company that offers ongoing consumer education in debt reduction, money management, and budgeting. Make sure that your debt reduction counselor will set up a debt management plan that is specific to your situation and income. This should be a written plan that you agree to follow, and there should be periodic checks by your counselor to ensure that you are adhering to the plan.

There are common-sense business practices you should follow. You should not deal with a debt counseling agency that charges you a fee to simply learn about their services. Nor should you deal with debt managers who use high-pressure tactics to make you sign a contract, or who insist that all agreements be made over the phone instead of in writing. If the company is not willing to put their promises and prices in writing at the beginning, you should not do business with it.

Some states have restrictions on the types of debt services a company can offer. Make sure the debt companies you are considering can legally operate in your state.

There are trained and reliable debt counseling options available that can safely and securely lower your debt load and increase your credit ratings, if you take the time to search for them.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. Not Intended As Professional Advice.