Debt relief organizations provide resources and debt management services to consumers who struggle with burdensome debts. Consumers seek the help of these organizations to gain control of their finances and reduce or eliminate debt. Prior to enrolling in a debt relief program, consumers participate in a consultation with the organization where they can ask questions about services and determine how the organization can help their personal financial situation.
What Debt Relief Programs Do You Offer?
There are several types of debt relief programs. A legitimate consumer credit agency will help you choose the right option for your financial situation. You should be presented with a range of services such as budget counseling, debt management programs, debt negotiation programs and bankruptcy counseling. If an organization gives you a single debt relief option, seek alternatives with another agency.
What are the Costs of Your Services?
Some debt relief organizations provide free services or charge a nominal fee based on the consumer's ability to pay. Other organizations charge setup or monthly fees for services. There should never be a charge to receive information or consult about debt relief options. The Federal Trade Commission warns that if an organization won't help you because you can't afford to pay, look elsewhere for help. Do not pay for a debt relief program before any services are provided.
What are the Qualifications of Your Debt Relief Staff?
Some debt relief organizations claim to employ a staff of counseling agents who are experienced in developing budgets and helping consumers manage debt. Ask what specific qualifications the staff members have and if they have the appropriate licenses to help you in your state. Inquire as to any accreditations or affiliations the agency has with outside organizations.
Is My Personal Information Secure?
During a debt relief consultation, the organization will request several documents pertaining to your assets, income and debts. Most information contains your Social Security number, address and personal financial information. Ask this question to ensure that your personal information remains secure during the debt relief program and after you have successfully completed a program.
Do You Guarantee Success?
This is a loaded question. Legitimate debt relief organizations cannot guarantee a successful outcome for any financial situation or circumstance. If an organization says it can eliminate negative accounts from your credit report such as judgments, liens, collections and charge-offs, it is in violation of the law. Accurate negative information cannot be removed from your credit report. Steer clear of agencies that make promises to remove negative accounts or reduce the amount of debt you owe.
Can I Perform Any of Your Services on My Own?
Legitimate debt relief organizations will gladly provide you with the information and resources you can use to help yourself out of financial hot water. Educational materials are usually provided for free. Many nonprofit organizations have counselors available to assist you with debt relief options free of charge.
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