Choosing a debt solution isn’t a decision which can be made with ease. There are companies that promise to relieve your debts if you send them money, but how trustworthy are these firms? Choose the best debt management agency or a debt consolidation agency.

Several Unresolved Complaints with the Better Business Bureau

Any debt management company that you are considering must be checked with the BBB, your state attorney general, and local consumer protection agency. You are likely to see some complaints, but the majority of them really should be resolved.

Advice or Instructions to Stop Paying Creditors

Many debt relief and debt negotiation companies inform you to stop paying your creditors. In the meantime, your accounts go to 30-, 60-, 90-, and even 120-days late. Each month that you miss a payment, your creditors report it to the credit bureaus.

Because of this, your credit score suffers. Don’t stop paying your bills unless your debt management firm starts sending in your payments promptly.

Non-Profit Agencies That Charge High Fees

You’ll encounter many debt management agencies that claim to operate under non-profit status and there’s a possibility that they do. However, some companies use this as a way of convincing you that their high fees are legitimate. There are some companies that will assist you for a reasonably low fee.

Vague Information About How Your Installments Will Be Used

If you are sending payments to your debt management company every month, then you need to inquire what the money will be used for. If your company denies you this information, take your money and your business elsewhere.

Lack of a Contract or Written Agreement

you should not commit to any debt management firm based solely on a phone conversation. Request a written copy of the terms and conditions of your service before you agree and especially before you make any payments. If you do not agree with the terms, try negotiating. If you think that the terms offered aren’t reasonable, move on.

Offers to Remove Negative Information from Your Credit History

No debt management company has the authority or the ability to make changes on your credit report. Any guarantee to do this is a sham.

All any debt management firm is able to do is attempt a negotiation with your creditors to have the negative information removed. This, you can do yourself.

Agencies then talk terms in behalf of the client to lower the interest charged on the outstanding debts. An agreement should be made regarding stopping overtime fees and penalty rates.

As soon as a plan is drawn up among the various creditors, the client then sends a monthly payment directly to the debt management agency, which often disperses the agreed amounts between creditors.