How to Find a Reputable Debt-Management Company

When you start to feel that your personal debt is spiraling out of control, you may begin to consider contracting the services of a debt management company. There are many reputable and experienced debt-consolidation companies to choose from, but you should still do your homework to make sure that you're dealing with a company that's looking out for your best interests, instead of just trying to make a commission. The search process for a debt management firm should be geared toward finding just the right company for you.

Instructions

1

Ask for referrals from your friends, family members and people within the financial industry that you trust, such as your banker or your accountant. It may turn out that your bank or your accountant offers debt management services. Even if they don't, they should be able to offer you referrals to work with.

2

Contact each of the referred debt-management companies by phone to set up a personal interview. Ask them what formal certifications they hold, how many years they've been in business, and whether they're affiliated with a larger company. Some states allow certification of financial planners, while other states don't require certification of debt counselors at all. A debt company that has taken the extra step to become officially certified by a national organization when state law doesn't require it shows a desire to be known as a reputable company.

3

Check each company with the Better Business Bureau. You can check with the bureau's online resource, or you can contact your local office for more information. A debt organization with a history of client complaints should be avoided.

4

Check each organization out online. Go through its website and see what its affiliations are and if any past customers have posted anything about the company on public Internet message boards. Be wary of any company that does business these days without offering a website as a resource.

5

Ask plenty of questions in your personal interviews. Make note of the answers given so you can check on their validity later; also make note of how confident and comfortable the representative made you feel. Describe how completely they answered your questions (be sure to ask several direct questions about how the company does business).