As we go on with our day to day life, it sometimes slips our notice that our debt has grown into a mountain that is hard to manage ourselves. At times, we may need a third party to look at our financial situation with unbiased eyes. In this case, a credit counsellor to give us debt management counseling may be necessary. However, with the number of these organizations both legit and fraudulent mushrooming, choosing the right one to help you may be quite tricky. The following are some tips on what to look for in them.
Seek For Licensed Debt Management Counseling Firms
Due to the many scammers posing as debt management companies, always seek for one that is duly licensed for your protection. Registration or licensure for these firms is now required in numerous states before they are allowed to offer their services.
Written Debt Management Counseling Agreement
Do not engage in a DMP without putting a contract into writing. Make sure you read and understand all that has been indicated before you ink the contract. Ask for terms that are unacceptable to you to be modified. If they are not amenable to it, then look for another firm to help you.
Debt Management Counseling Services To Seek
Seek for a credit counselor who has training and certification in budgeting, consumer credit and money and debt management. The training of credit counselors must have been conducted by an independent party, not by certain creditors. The services of the debt management counseling firm must also include budget counseling and savings and debt management classes that can guide you in properly managing your finances. Besides the classes, you must also be able to talk over with your credit counselor your financial situation in full. This discussion will lead you to the development of a debt management plan custom-made to suit your situation that will help you eliminate your debts and give you tips on how to avoid getting in the same money trap. Usually, the first counseling meeting would run for an hour and is typically followed with succeeding sessions.
Not All Debt Management Counseling Should Lead to DMP
Most often, debt management program will be brought up, but you should keep in mind that a DMP is not suited for all cases. Beware of debt management counseling firms whose only advice for you is to adopt a debt management plan even before they have allotted ample time in reviewing your financial circumstances. Demand for a thorough analysis. Also keep watch of firms that put a price tag on information regarding their services.
Affordable Debt Management Counseling
Also ask for a written pricing quotation and ask if this already includes all fees. There are firms which are willing to waive or discount their fees to help you. If you cannot afford their fees and they are not willing to adjust their price, seek for one that can.
Debt Management Counseling Employees Who Are Independent Of Creditors
There are credit counseling groups who pay employees commission if a client registers for certain services, such as a DMP. It is not unlikely that creditors give incentives to debt management companies which are able to market DMP’s. Stay away from these as they are more likely to work for the benefit of creditors and not for clients like you.