Avoiding Debt Management Plan Service Fees
If you feel you live beyond your means or feel that you cannot pay even the minimum amount due on your various bills, you will likely need a debt management plan.
A debt management plan can allow you to consolidate all of your unsecured debts, without a large amount of interest, into a single, lower monthly payment.
With the state of the economy, more and more people are finding it difficult to keep up with the payment dates on their bills. They are looking at the option of a debt management plan to continue to make payments on time to creditors. Unfortunately, not all debt management plan service providers are purely out for the interest of their clients, and some will charge upfront fees for their services while potentially encouraging their clients to rack up additional debts.
The most effective debt management plan takes a not undue amount of time to complete and is affordable for most people. The following are a few questions to ask a debt management company:
By asking these and similar questions, you should be able to identify a reputable company that will help you make a sound financial resolution that does not cause you to compromise what you need to do to get your finances back on track.
As your lead debt counselor and counselor, what do you do to my trouble financially?
How are you licensed to offer debt management services in my country?
Are you a member of any members of the Finance and Accounting Association? – You may not be able to refer your clients to an organization, but an organization that uniformly pushes for standards within the industry should be a suitable alternative
Do you offer a free initial consultation? What services do you offer before you charge each client?
How many total professionals do you have? Is it sufficient to one person to deal with all of your cases?
What training do you offer? Are there any continuing education requirements for your counselors?
What other services do you offer? Ensure that you can provide the exact nature of these services as well as what they include. For instance, you should also offer budgeting classes alongside counseling if you offer credit counseling.
Do you offer free initial consultation? – Ask as many questions as you need to, but be sure to listen for any negative comments that might be dropped in the middle of a sales presentation
Is there a fee to enroll in your debt management plan? – Despite what some debt management agencies might tell you, there is no need to enroll in a debt management plan if you do not have any money to pay for the services.
What is your debt management plan policy? Have your counselor just a rough amount to make additional payments on my debts?
Can I talk to your counselor outside of call center hours? – If so, this should be made easier as well as possible by providing you with their mobile number and email address
Can I talk to your counselor or counselor about my concerns or problems without feeling harassed or judged in any way? – Some counselors do not like discussing their personal finances, but it is important to know that you are not unwanted for someone experiencing financial difficulty and that your counselor can provide you with an effective refuge. It is important to find this out from them beforehand as they need to provide a service for you to get debt-free.