Signs of a Reputable Debt Consolidation Counselor

 

You have concluded that the only way out of your debt hole is to consolidate all of it into one account. However, with the proliferation of different credit counselors, debt specialists, debt counselors, you get confused as to who is the best person to talk to. Whatever names they call themselves, debt or credit counselors or specialists, they all have one function and that is to assist you, debt-ridden that you are, in improving the situation by helping you pay off all your debt in a timely manner.

 

As we have said, there has been such a surge of service providers in this arena that some are out to scam the helpless. How do you know that your debt consolidation counselor is not just out there to make a quick buck out of you? Read on to find out if your counselor is there to help you get out of your mess or push you even deeper.

 

1. Is the company accredited?

 

This is the first thing that you should look for. The debt counseling company must be accredited with the National Foundation for Credit Counseling, Association of Independent Consumer Credit Counseling Agencies,  the local Chamber of Commerce, Better Business Bureau or the Council on Accreditation. Membership in any of these associations gives some assurance that the company is legitimately doing business to help you get out of your debt. Look for references regarding their services or for customer or legal complaints.

 

2. What is the orientation of the company?

 

Most credit management agencies are non-profit which means they exist to assist individuals with debt issues at a minimal charge. When the counselor informs you of the charges running to several hundred dollars, say thank you and immediately leave.

 

3. Is your debt counselor certified?

 

Okay, you have established that the company is accredited. But you must also confirm that your debt counselor is certified. Being certified ensures that your debt counselor is not out there to line his pockets with your money. Right and left, scams are rampant because individuals do not verify the company and counselor separately. Some people have no qualms of misrepresenting a company to make money out of you so beware.

 

4. Does the company inform you of its fees upfront?

 

Information is the key. How much does the company charge you? Did they inform you upfront? Check for other hidden service charges. The whole point of the exercise is to keep you out of debt. If the company does not inform you of its service fees from the start, it is doubtful that it is a reputable consolidation company. They can make you more debt-ridden than before with their high fees and other charges.

 

5. Does the company provide for a confidentiality clause?

 

The counselor must assure you that your business relationship is kept in confidence. Confidentiality is important in this regard because individuals do not like to advertise the