There are hundreds of credit counseling companies out there all clamoring for your business. The crumbling economy has got everyone in some state of financial trouble. But, how do you know which company you should go with if you’ve decided that credit counseling is the way to go? Obviously you don’t want Joe Schmoe down the street that operates out of a shoe box, but there are many companies that look virtually identical. What questions should you ask to make sure that this a great fit for both parties involved? Read on for some of the key things you need to ask before signing on the dotted line.
Question number 1. What’s Your Plan To Eliminate My Debt? There are two main types of debt relief amongst these types of companies. Firstly, there is debt repayment which involves contacting creditors and negotiating a much lower interest and monthly payment on a fixed monthly plan. The second type is debt negotiation. Like it’s name implies, this involves negotiating a settlement amount with the credit card companies for a lower amount that is pennies on the dollar and less than the total amount due. Both are effective strategies for eliminating debt.
Question number 2. Do you have written policies and procedures in place within your company? Written in black and white, a strict code of ethics, rules, policies and procedures is the difference between our Joe Schmoe and a professional, knows-what-it’s-doing company. There is absolutely no question on how things are done with a written policy in place. Ask to see these documents and read them through to make sure you understand how things work.
Onto Question number 3. How do I know what’s going with my account once you start work on my case? One of the most important factors when working with debt relief counselors is the follow up. Ask them how you will check to see what’s going on from month to month. One of the most popular methods is to log onto a secure account portal to see where payments and balances are each month. Other companies may provide paper statements in the mail for their clients.
Question number 4. How much does it cost to work with you? Everything may seem fine and dandy with policies and procedures, but if the fees they want to charge you seem outrageous then it may be time to walk away. Keep in mind your current balances and what they will do for you in the debt repayment and negotiation process. If your gut tells you it’s too high, then it probably is. Walk away and find another company.
Last question. Are your results guaranteed? Credit is a tricky business, it is constantly changing and flexing with the economy. A truly honest and integrity based debt relief counseling company will tell you that no results are absolutely guaranteed. It just can’t happen. What they should be able to guarantee is their procedures and work done. A company that tells you that they absolutely guarantee their results is taking you for a walk in the magic woods. Put down that pen, politely decline and go to another company for your debt relief needs.
