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The Criteria of Good Debt Management Programs


									Choosing the ideal debt management program to suit your particular debt issue is not
easy. There are so many companies and agencies with false claims and promises that
you end up being too wary and perhaps a little skeptic on how the legit companies can
actually help you lose your debts in just a few simple steps. Another thing that bugs
you is that even if you have found a list of legit companies specializing in managing
debts, how do you know which one is the right one for you?
Before you decide to engage a debt-help company to assist you with your financial
problems, you should first know the considerations of good debt management
programs. Based on the guidelines, you will at least have the general idea on what you
should expect to gain from these agencies or companies. Bear in mind that not all
companies will be able to fulfill all the considerations but the rule of thumb is that a
good program should be clear, simple and does not make you feel uncomfortable
when signing up for it. The guidelines in choosing the best debt management program
are as follows:
1. You should always look for debt management companies that are licensed,
registered, certified and accredited by relevant government bodies such as the Federal
Trade Commission (FTC) or the Better Business Bureau (BBB). Some companies
claim to be non-profit but don’t be fooled into thinking they won’t be
charging you certain fees because they will.
2) Transparency and clarity are the characteristics of a good program. No hidden
agendas or surprises. The company’s representatives should be able to answer
all your questions without seeming like they are hiding anything from you. If you do
not understand anything at all, ask. If they are reluctant to answer your questions, they
are likely hiding something and will probably not disclose certain information before
you sign up for their program. That is a sure sign that you should just up and leave.
3) No debt management program service should start making suggestions or giving
you fees quotations before even looking at your credit statement or your financial
background. Companies that do that are merely interested in making money than
actually helping you manage your debts and eventually free yourself of them. A good
debt management program advisor will definitely ask to see or find out more about
your credit status, large purchase activities, your list of creditors, interest rates as well
as minimum payment amounts. It is only based on these vital information that they
will be able to assess the extent of your financial problem and come up with a plan to
help you.
4) If a debt management company refuses to give you any information in writing, you
should prepare to walk out the door. Nowadays it is very important to get everything
in writing especially when it comes to fees and additional charges as people can
simply promise anything verbally. You don’t want to be caught off-guard
when they charge you with a fee that is not listed in their fees and charges column. A
good debt management company will be more than happy to give you a written
version of their program in order to help you understand it better.
5) Personal credit information is private and confidential. You definitely do not want
any information about you and your credit status to be leaked out to any party without
your consent. Ask about privacy policy and the necessary steps the company will be
taking to ensure that your information will be safe-guarded and not given to any other
party without a written consent from you.
6) Debt management companies will definitely charge you for their services but a
good one will not overcharge you and they will not surprise you with hidden fees as
your program progresses. Get their representative to clarify all the fees and charges
that have to be borne by you in writing with full disclosure to avoid future disputes.
Now that you know some of the considerations of a good debt management program,
you can easily spot the bad ones from the good ones. If need be, you can even quiz
them on terminologies such as debt management consolidation, debt settlement or
home equity loans and see if they can differentiate all three terminologies. If they
can’t even do something as simple as that, how are you going to trust them
with something even more complicated like your debts?

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