Choosing the right debt consolidation service provider is a very important. It is the very first step toward total debt relief. You should make sure that your first step is in the right direction. You should do proper research and take all the time that is necessary to select the correct people to work your way out of debt.
There are a lot of companies that offer debt consolidation service. All of them claim to be the best. While they all promise to help you eliminate you debt, not all of them keep their promise. To make sure that you don’t end up with the wrong people. I have compiled a list of questions you must ask your debt consolidation service provider before signing any contract. These Questions will also provide you with an insight into the real intentions of your debt counselor.
1. Which of Your Services are Free of Charge?
Most of Debt Consolidation Service providers advertise “Free Consultation” as a tool to lure customers. The free consultation usually starts with a review of you current debt burden and analysis of current options available to you. This is normally the end of free service with majority of Debt Consolidation companies including so called Non-Profit Debt Consolidation Service Providers. (they too need to make money to keep on helping people like you)
Free Consultation will end sooner or later. So, It is in your own interest to ask before hand about the consultation fees that you are expected to pay. you should know the exact amount you will be charged and its breakup and due dates etc.
2. Can You Provide Me List of All Fees You Charge in Writing?
Now that we know, we will have to pay for the services of every debt consolidation company. To decide between all those companies, we should have a look at the fees and other service charges they might bill us with. It is always good to have full disclosure of fees in writing as this will help eliminate any surprises at later stages.
Asking for full disclosure will also help you identify the companies reluctant to give you full details in writing. Avoid these companies at all costs.
3. How Much of Your Fee is Required to be Paid Upfront?
If they require all of their consulting fee upfront, Run! Run as fast as you can until you find another company. Upfront fees, especially large amount (amounts in excess of $100) are a sign that there is a scam going on. Good companies never request fees in advance. They always bill you later.
