How to Find a Trustworthy Debt Consolidation Firm

Debt Consolidation companies help those in debt to reduce their monthly payments and manage their debt by consolidating all debts into one monthly bill. Unfortunately, there are many fraudulent debt consolidation companies out there. Follow these tips to thoroughly research debt consolidation firms and find a trustworthy company.

Instructions

1

LOOK FOR AFFILIATIONS: A trustworthy debt consolidation company will seek to reach certain quality standards that qualify it for various professional affiliations, such as the International Association of Debt Arbitrators, the Association of Settlement Companies and the U.S. Organizations for Bankruptcy Alternatives. Look for these memberships on the company's website, and make sure to verify that the membership is legitimate by contacting the association or checking the listings with the Better Business Bureau.

2

DO YOUR RESEARCH: Visit the websites of the Better Business Bureau and your state Attorney General. Both sites will contain records of any consumer complaints filed against the company and will have resources to help you confirm any claims about affiliations and certifications made by the debt consolidator.

3

WATCH OUT FOR RED FLAGS: Some companies present signs that they may be less than trustworthy. Be leery of a company that asks for large upfront fees, posts an ambiguous fee structure or that can't be reached during normal business hours. See the article on "How to Recognize Debt Consolidation Scams" for more tips on common debt consolidation scam red flags.

4

RECOGNIZE SIGNS OF A TRUSTWORTHY DEBT CONSOLIDATION COMPANY: One promising sign of a trustworthy debt consolidation company is the offering of workshops or personalized services related to financial management. Financial advisors who are seeking build their reputation as financial planners and consultants will have a clear motivation to serve their clients well. This also shows were a legitimate income stream may be coming from if the firm is promoting free debt consolidation services. In addition, a credible firm will spend time getting to know your individual financial situation. If the company attempts to rush you into making a commitment, take this as a red flag. Legitimate firms will also be able to offer you some free resources about financial management if they determine that consolidation may not benefit you.