The Best Debt Management Solutions

With credit card balances and interest fees consuming your financial resources and sanity, you may look to a third party debt management firm to help you get back on track. When it comes to choosing a debt management service, there are many providers and types of companies -- and many operate programs as unique as each of our financial situations. Consider various factors when choosing the group best able to work with you to help alleviate your debt load.

Inspire Confidence & Comfort

Working with a debt relief agency is no different than having a business relationship with any other service provider. First, you need to feel comfortable working with this firm and your account contact. The best debt management firms will not push you if you say you are uncomfortable or unclear about what they expect of you. If you feel uneasy about the tactics used by your debt management firm, this particular group may not be the best fit for you and your needs.

Have Low Fees

You should expect to pay service providers fees for their time. However, it is important to understand the fee structure to be a fully informed customer. The best debt management groups will be upfront about their fees and should not have any unreasonable charges that would preclude you from most effectively paying down your debt. Expect some fees, but if you find that administrative costs are chewing up your dollars rather than paying down your debt, you may want to look to another debt management firm.

Be Clear on the End Result

Being debt-free is certainly a goal worth pursuing. But when you expect concessions from credit card companies, prepare to find some strings attached. Debt management programs operate toward the same goal, but depending on the techniques employed, they might affect your credit score and limit your future borrowing ability. Customers that enroll in a credit-counseling program often see their accounts closed with restrictions on obtaining new credit until the plan is complete. Debt settlement firms may provide lower total balances, but at the cost of having charge-offs listed on your credit report. The best debt management groups will tell you what to expect each step of the way. And they will tell you about the potential impact the program may have on your credit profile.

Empower You for the Future

Turning to a third-party debt management service is not something anyone puts on his list of goals to accomplish. Once you complete your debt-management plan and have paid down your debt, commit to never letting it get out of control again. You may need some guidance to stay true to this objective. The best debt management groups will provide education and support to help you establish a budget and identify warning signs that your debt is again spinning out of control.