Getting into debt is easy. Getting out is considerably harder. Once your finances are out of control, you may be forced to seek help from a third-party debt management company in order to help you budget your money and begin repaying your debt without also bankrupting yourself at the same time. This is why debt management professionals exist. Their goal is to help you find relief from your financial woes in a way that makes sense for both your budget and your creditor’s needs.
Finding a debt management company can be trick if you don’t know what you’re supposed to look for. The Internet is a great resource, but it’s also jam packed with so much conflicting data that you could spend days looking for an answer to your debt problems and never find exactly the information you need. Making it harder is the fact that it can be almost impossible to know whether or not a debt management organization is legitimate based only on their website – and there are definitely some scammers out there. This article will equip you with the knowledge you need to successfully find reputable debt management help online and avoid any company that is only out to cheat you.
What to Look For
The first thing you need to do when seeking debt management help online is what to look for. There are few key things to expect from debt management companies that have a web presence.
One of the major things you should look for is that they offer realistic solutions. Although all companies will want to promise their customers great service and great results, when dealing with something as serious as debt management, the company should be sensible about what they can offer you (even if they are very enthusiastic about their services).
Examples of services you should look for are in-person consultations and low enrollment fees. It is impossible for a credit counselor to offer you an individualized solution solely over the phone without first looking at your finances. Though many companies do use phone and Internet media to communicate with their customers, it’s not too much to ask that they meet with you in person before asking you to sign any agreements. You should also expect low enrollment and monthly fees due to the fact that debt management services should be in the business of helping you get out of debt, not creating more.
Another essential thing to look for is accreditation from an independent accrediting association. Though there are several such associations currently offering accreditation, there are a few in particular that are well-regarded for having high standards. The predominant ones are the National Foundation for Credit Counseling and the American Association of Debt Management Organizations. Both of these organizations have databases of approved credit counselors that you can search on their websites. The Justice Department also has a website with a searchable database of national debt management organizations whose operations are in line with federal regulations.
Finally, always check to see what kind of references the debt management organization you are interested in have on their website. How long have they been in business? What does the Better Business Bureau have to say about them? Simply checking any of these sites can save you a lot of hassle and separate the legitimate debt management companies from the unscrupulous ones.
What to Avoid
An old saying is that if something sounds too good to be true, it probably is. This is definitely true when seeking debt management help online. Never trust an organization that promises you ridiculous things. For example, it is practically impossible to pay down debt in 3 months. Similarly, no debt management company should guarantee that they can cut your debt down by 50% or more before looking at your finances and speaking with your creditors.
While many companies will offer a free debt analysis online, be wary of any website that prompts you to enter sensitive information such as your Social Security number and the like. This is just common sense.
Avoid any company that lacks accreditation from a national foundation. Accreditation exists for a reason: to protect the consumer from unscrupulous organizations looking to benefit from desperate people. Some companies will avoid mentioning accreditation or say that they are self-accredited. This is unacceptable. Also avoid a company that doesn’t have a concrete address and contact number; they are almost certainly scammers.
Essential Resources
As mentioned above, there are a few websites you can visit to find legitimate debt management help online. The National Foundation for Credit Counseling has been in business since 1951 and is dedicated to helping individuals who have found themselves unable to repay their debts. They also endeavor to teach debtors proper money management skills that will continue to serve them after they have eliminated their debt. You can use their website to find debt management organizations in your area that have been deemed legitimate according to the standards of the NFCC. You can find their website at NFCC.org. Similarly, the American Association of Debt Management Organzations has a searchable website of organizations they consider to operate according to their high standards. You can find them at AADMO.org. Both of these websites also offer tips as to what to look for in a credit counselor and what kind of individuals should seek debt management assistance.
Sources:
Debt Relief Scams
Shady Debt Collection Promises to be Wary of
Find a credit counseling agency through the American Association of Debt Management Organizations
Find a Counselor through the National Foundation for Credit Counseling
Justice Department approved Credit Counseling Services
Better Business Bureau
