How to Find a Debt Management Company

Debt management companies are usually nonprofit credit counselors, such as those affiliated with Consumer Credit Counseling Services. The agencies specialize in debt management plans, which allow you to restructure much of your debt with the cooperation of your creditors. The counseling agency develops a plan for paying off or greatly reducing much of your unsecured debt -- such as credit cards -- over a four-year period. You are charged a monthly management fee, and must also send a lump-sum payment to the counseling agency each month. The agency uses that money to pay your unsecured creditors.

Instructions

1

Find credit counseling agencies in your area approved by the U.S. Department of Housing and Urban Development. Get phone numbers by visiting the HUD website (see Resources).

2

Conduct telephone interviews with several agencies. Ask questions about fees, possible pitfalls and the agency's overall success rate in helping customers with the plans. See a complete list of questions to ask at the FTC website (see Resources).

3

Choose a counseling agency offering debt management plans after conducting your telephone interviews.