How to Rate Debt Relief Programs

Debt relief organizations promising to eliminate all of your debt or a high percentage of it may not be telling the whole truth. You can rate debt relief companies' level of dependability and rate of success. The process requires legwork; however, acting as an informed and proactive consumer can save you money in the long run. When rating a debt relief program, evaluate the company as a whole and fact-check every claim it makes.

Instructions

1

Research the organization's consumer satisfaction rating. Contact the Better Business Bureau to view the organization's favorability report and read consumer complaints online. Avoid organizations with a low favorability rating such as a "D" or an "F." Be wary of any organization that is not affiliated with the BBB.

2

Contact your state attorney general's office to learn about complaints against the organization. Avoid companies that are currently being sued by the attorney's general office for fraud or illegal practices and stay away from companies with a high volume of consumer complaints.

3

Consider the organization's claims. Avoid companies with sweeping claims like, "We can reduce your principal balance by as much as 50 to 70 percent and dramatically decrease your monthly payments." Rate a debt relief organization based on its willingness to review your specific financial situation and give a free and detailed assessment of how debt relief can work for you.

4

Rate the price of the program. The Consumer Federation of America says you can expect to pay $50 for a set-up fee and no more than a $25 monthly maintenance fee. Speak with debt relief organizations that charge within this range and avoid any organization that refuses to discuss pricing. Go elsewhere if an organization requires a referral fee, which can be a ploy to charge you hundreds of dollar before sending you to a second debt relief company.

5

Compare the program's debt relief options against your specific needs. The Federal Trade Commission warns against organizations claiming one-size-fits-all solutions. Look for programs that offer debt settlement, debt consolidation, loan modification and a variety of other debt relief options.