Having an insurmountable amount of debt can be much more than a burden on your financial history; it can be a stressful load to carry around on your shoulders. If you’re looking to relieve yourself from this kind of burden, consider using a credit counselor to help you reduce the amount of debt you owe. Most creditors know that receiving some money is more preferable than none at all, so they will usually work with you in order to establish a reduced repayment plan. However, there are a few important things to remember when choosing a debt management agency.
Compare Companies – The first step to take before selecting a debt management company is to find out the details and compare the results to others. You’ll want to select one that is more interested in helping you establish good spending habits rather than those who simply want you to pay a fee. Spend some time researching their reputation and talk to a counselor on the phone to gauge their intentions. If they seem to talk more about getting you to pay their fee than how they can help you manage your money better, then it’s best to avoid that particular company.
Are the Counselors Certified? – Doing business with a debt management company that does not have certified counselors is definitely a warning sign since those who are certified are generally the most knowledgeable about debt reduction. Another red flag is any counselor who promises that they can fix your credit history quickly if you pay a fee today – there is no short cut to establishing good credit and any counselor who is trying to convince you otherwise is not reputable. Instead, select one who is willing to spend time talking to you about your goals without pressuring you to make a decision today.
Check the Company History – Finally, before committing to any agreement with a debt management company, run them by the BBB or search for customer reviews on the internet. One or two reviews shouldn’t be a cause for alarm as there will always be an unhappy customer, but if you see many reports filed or complaints made on the internet – especially for the same reason (incompetent counselors, broken promises, failure to issue refunds, etc.) – then you should certainly steer clear.
Reestablishing a good credit history is necessary for many things, so start reducing your debt today by contacting a reputable debt management company that will help you achieve your financial goals.