Choosing a Debt Management Company

Choosing a Debt Management Company

How do you know which company to choose?

There are literally thousands of Debt Management companies to choose from. Some questions to consider are:

Q: Are they licensed and bonded?

Q: How long have they been in business?

Q: What is the start up fee? (MANY companies charge a start up fee equal to the monthly payment (ie/ if your monthly payment is $500, then your start up fee is $500). This means your creditors do NOT get paid the first month – putting you further behind.

Q: How was your monthly payment calculated? Did the company representative figure the payment based on each individual creditor’s requirements? We have found many companies will “quote” you a monthly payment – not taking into consideration the specific requirements for each individual creditor. You will then be asked to increase your payment to cover the necessary requirements. You will continue to be assessed late fees and high interest until the requirement is met. The “sales pitch” may quote you a low payment; however the creditor may NOT accept this low payment on the plan.

Q: Will customer service contact you even if you’re overseas? (Many companies don’t want the added expense of making international phone calls)

You owe it to yourself to find out!

It costs nothing for a free consultation, and could save you thousands!