There’s no shortage of debt consolidation companies in the United States. However, not all of them are ethical, or even legitimate. Here’s how to tell a trustworthy debt consolidation company from one that could make your financial woes worse.
Who Is The Company Aligned With?
The characteristics of reputable debt programs include affiliation with professional organizations such as the American Fair Credit Council, the United States Organization for Bankruptcy Alternatives, the International Association of Debt Arbitrators, and the Association of Settlement Companies.
If you find that a company you’re interested in is affiliated with these organizations or others with similar bona fides, that company is likely trustworthy. By contrast, if the firm lacks such affiliations, it may not be on the up and up.
Service Fees
Reputable debt relief programs don’t charge upfront fees. Also, if you find that a company is charging an exorbitant amount for its services, look elsewhere. It could be that the company senses your vulnerability and is looking to take advantage of your situation. Keep in mind the chief reason you’re looking at debt settlement or consolidation is to erase your debt as soon as possible. There’s no sense in paying beaucoup bucks for such services.
Favorable Reviews
An above-board debt program will have many positive customer reviews. Stay away from companies that have a lot of unfavorable feedback. You can check out the company’s rating on the Better Business Bureau website.
Longevity
Any company that has been in operation for several years is likely trustworthy and dependable. It might be best to avoid newbies until they’ve established a track record.
Personalized Service
No two debt problems are exactly alike. Debt consolidation might work best for some people; for others, debt settlement is best. A reputable company will advise you according to your circumstances. If you sense that the firm is pressuring you into signing an agreement, take that as a red flag that the company might be a scam.
Complimentary Workshops
Reputable and established companies typically provide free workshops designed to educate people on the value of wise money management. These workshops are used to promote the company’s services. If a company offers such workshops, chances are they’re legit.
A Good Website
The debt company’s website should give you lots of information without you having to enroll in the program. Find a company with a website that’s informative and easy to navigate and understand. Before you give the company your contact information you should be able to know what it’s about and what they have to offer.
Phone Accessibility
When you pick up your phone to call a debt settlement company, a live person should be on the other end who will listen to you and help you find the best possible remedy. You should be able to easily understand the company representative, and it should be comfortable talking to them. You also want to ensure that you’re being listened to, as opposed to being on the receiving end of a sales pressure tactic.
Qualified Consultants
Be sure the debt relief company you choose has qualified consultants. Reputable firms should have people who are trained and certified in debt settlement or credit counseling, depending upon the company’s focus. You also may want to contact your state’s attorney general or consumer protection agency to verify the company in which you’re interested has the licenses your state requires.
Now that you have the characteristics of reputable debt programs down pat, you can confidently choose one and be on your way to a more financially stable future.
