How to Find a Debt Consolidator

The term "debt consolidation" refers to pooling all of one's debt to create a single, often lower, payment. Too many credit card payments is common for many people. Debt consolidation has its hazards so be diligent in seeking out a company to work with. Many people do not need a debt consolidation company but can manage debt through more fiscally prudent methods such as paying more than the minimum on credit cards or getting a personal loan from a bank or credit union. If a debt consolidation company seems the best route, be aware of the process and don't be afraid to ask questions.

Instructions

Seek out options

1

Seek advice from a financial adviser or credit counselor that does not offer debt consolidation to get an unbiased opinion. Use the phone book to find local options then call to schedule an appointment. Local nonprofit organizations, such as a local United Way, that offer community assistance should be able to recommend reliable services.

2

Be honest and give a financial or credit counselor factual and accurate information. The better picture they have of the situation, the better advice they can give.

3

A counselor may recommend debt consolidation. If so, ask which companies are the most reputable. Ask for more than one company's name and get their contact information.

4

Find someone who has gone through, or is in the process of, successful debt consolidation. If they recommend their consolidator, that is a good sign. If not, put that company on a "do not contact" list. Find out if they received financial training, a debt management plan or other services, and which ones they do or do not recommend.

5

Operate locally. Be careful about working with a company that doesn't have a local branch or representative. It may be legitimate, but it is harder to tell when working with someone online or over the telephone. If contacting a company seen on television or other media, find out if they have any local representatives and work with them.

Make a choice

6

Contact the debt consolidation companies that were recommended first. It is important to work with a company that is reputable. When contacting companies through the Yellow Pages or companies found online, never work with ones who are hesitant to divulge information or answer questions with a straight answer.

7

Find a company that will offer personalized service from trained counselors. Serious debt holders often need to be taught how to manage money in a smart way. Counselors should be there to help. When seeking the help of a debt consolidation company, they will charge for their services although it may be by adding the cost into the monthly payment.

8

Make sure you trust the company. If a particular counselor isn't the right fit, ask for a different one or find a different company. Debt holders should feel comfortable with the actions they are taking to become debt-free. The company should also want its clients to feel comfortable and will be willing to do what it takes to earn their trust.