How to Find a Debt Consolidation Agency

Debt consolidation agencies offer loan products, which combine debt and purportedly lower monthly payments. According to the Federal Trade Commission (FTC), these loans may offer tax advantages unavailable through other credit types. Debt consolidation agencies offer several products including personal loans, home equity loans or debt management programs. The FTC has found that some debt consolidation---or debt management companies---have deceived consumers. As a result, to find a debt consolidation agency, careful and meticulous research, networking and an honest comparison yield the best results.

Instructions

1

Contact financial services member organizations. Contact the National Foundation of Credit Counselors (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA). The NFCC is a credit-counseling network comprised of more than 100 members, according to the organizations website. The AICCCA works to develop a network of quality financial service companies. Contact the NFCC and the AICCCA to conduct an online or over-the-phone search for reputable debt consolidation companies. (See the resource section for a link to company's search tools).

2

Ask your friends, neighbors or family. Many people experience financial trouble at some time in their life. Ask these people about services they may have received. Speaking with those in your network offers a deeper level of insight into a company's professionalism and reputation.

3

During your research, create a listing of potential programs. This listing represents the top five or ten companies you will interview.

4

Review each company's background and licensing. Debt consolidation can place you in a better financial position, or make your situation worse. Research each company on your list by conducting a Better Business Bureau (BBB) review and researching each company's licensing status. Contact your state's licensing and regulation agency or the attorney general's office for information on a company's standing. Avoid companies in Maryland and Florida, as these states do not regulate credit-counseling services, according to Bills.com.

5

Contact each company to complete an interview. Non-profit counseling services are obligated to offer credit counseling, according to the FTC. Complete the counseling process to determine the type of product each company has to offer. In addition, ask questions about the program. Ask about service offerings, state licensing, counselor qualifications, fees and consumer confidentiality.

6

Complete an overall comparison. Once you interview each company, compare program offerings against your current payment schedule. For example, complete a company offering comparison then compare those offerings against your current situation. You may find that your current payment structure will cost less than a debt consolidation program. Take your time when deciding on a program.