You shouldn’t pick a debt consolidation company out of the blue and these tips will help you pick the best:
- Do they have membership in a reputable debt consolidation organization? Check to see if the firm is a member of the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). Agencies that are members of these organizations must adhere to strict standards of professionalism and accreditation and use only certified credit counselors.
- What qualifications do the counselors have? Ask if the counselors are certified and by whom? Select an agency whereby the counselors are certified by an outside organization, preferably NFCC. One way to test a counselor’s knowledge: debt consolidation monthly payment fees are subject to state law, and the agency representative should be able to tell you the specific regulations for your state of residence.
- How are the counselors paid? Stay away from organizations that pay employees a commission. This influences the number or nature of services they decide you need for them to get a high commission.
- Are the services personalized? A cookie-cutter approach most likely will not address your financial situation. Find out if the counselor will devise a plan tailored to fit your personal circumstances. Also, think beyond your immediate credit/debt problems and find out if the agency will offer you advice on avoiding problems in the future.