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How to Choose a Debt Consultant



The debt consultant industry is riddled with scam companies who will spend more time taking your money than helping you clear your debts. So, how do you find a good reliable debt consultant who can help you?

The following tips will help you to get a much better chance of finding one that you can work with.

Find a Non-Profit Debt Relief Company

Non-profit debt relief companies are not likely to be just out to make a quick buck. Many of the non-profits were founded because they wanted to create a more helpful system than the one that currently existed.

But, just because the company is not for profit doesn't always mean that their services are free. You will probably still have to pay for their services. Nonprofits still have to make enough money to pay their staff, their premises, and other operational costs.

Ask the company if you can see their 501(c)(3) certification or call the IRS directly to verify their 501(c)(3) status. 

Be aware that there are also debt consolidation companies that aren't non-profits but who may claim to be so. Don't take non-profit claims without verifying it first.

Research Complaints and Accreditations

You can find out if they are Accredited by Checking one or all of the following:-

  • The National Foundation for Credit Counseling
  • The Association of Independent Consumer Credit Counseling Agencies
  • The American Association of Debt Management Organizations to see if the company you're considering is accredited.

If the company that you have consulted is not accredited by any of these well-known organizations, you should probably steer clear of them.

You can do some research on the company by visiting the Better Business Bureau's website. If you can't find anything on their website, try giving the BBB a call.

Also, try looking on Ripoff Report website to see if anyone has filed a report or complaint about the company.

Finally, Google their name for terms like "Name + review" or "Name + scam" or "Name + results" to see if there is any feedback from other people.

Study Their Fee and Program Structure

Study what kind of fee structure they have. Do they ask for a payment upfront? Are there additional monthly fees on top of the interest percentage?

You should compare at least two or three companies to be able to get a good idea of what kind of consolidation you may qualify for.

Remember to do your own calculations. If a company claims they're only charging 8%, but when you do the math it comes out to more, that's something you should consider before you sign any paperwork. There are plenty of interest-calculators online that can make the calculation very simple.

Choosing a debt relief company is not a simple process. Your financial future and your credit report is on the line here. Compare several companies with each other, do careful research and make sure that they are really going to help you.. 

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