Choosing the Right Debt Specialist

All debt counselors are not created equal and choosing the right debt management provider is not something that should be taken lightly. What do you look for when choosing a credit counselor or debt management firm? The quality of counseling services may vary considerably from one debt counselor to the next. There are dozens of factors to consider, but these key points to choosing a debt management firm can make the process less stressful.

Key Points to Qualifying a Debt Specialist

1.    Accreditation - While no specific national or state accreditation will guarantee immediate success, there are organizations in the U.S. with the sole purpose of promoting high standards and ethical practices in the consumer debt industry. The International Association of Professional Debt Arbitartors is one of the most prominent in the debt settlement industry. Members of this organization are certified debt specialists in debt arbitration, otherwise known as debt negotiation or debt settlement and commonly confused with debt consolidation.  Their sole purpose is to educate consumers about their unsecured debt and credit reporting rights, while working on your behalf to create a win-win situation with each creditor.  Common Cents Credit Solutions is proud to be a member in good standing with the IAPDA since October 2008.

2.    Real Education - How much time is the agency willing to spend with you to discuss your particular financial situation with no upfront charges? Do they provide a complete consultation explaining the details of each option; from doing it yourself, to filing for bankruptcy?  Don't let anyone pressure you into a quick decision. There is no easy, quick fix in a debt settlement program and telemarketing salesmen who try to tell you there is should be avoided.  If the person you are talking with does not or cannot provide satisfactory answers to all of your questions, find another company.  At Common Cents Credit Solutions we carry nearly 10 years experience of working in the collections department for some major credit issuers and have insider knowledge on what really goes on.  We provide realistic expectations of how our services work when they are committed to becoming debt free.

3.    Nonprofit isn’t necessarily better - How is the counseling agency or company funded? Be aware that not every nonprofit agency has your best interests at heart. Some nonprofit counseling agencies charge high fees and others are run by people looking to line their own pockets. In debt management nonprofit doesn't mean cheap or affordable, or even good. Check the reliability and reputation of the company and read their testmionials.

4.    Avoid Hidden Costs - In recent years, credit card companies and other lenders have reduced some of the funding for credit counseling. This has led counseling firms to increase their fees or “donations”. Some of these increases are reasonable, but consumers should be careful not to get involved with a company that charges a large upfront payment just to establish an account. Everything should be disclosed upfront. The costs of service should be straightforward and reasonable. Don't forget to ask about services beyond a debt-management plan and debt consolidation. Are budgeting sessions available? What kinds of fees are charged for any additional counseling services?  Common Cents believes providing budgeting advice and education is also important to your success.

5.    A Written Plan - A reputable, certified debt specialist will take time to review your situation, evaluate your budget, and put your individual plan in writing. This personalized plan should include details on how creditors will be paid, as well as realistic goals for returning you to full financial health. Unrealistic promises should not be part of the plan. For example, a debt management or credit-counseling firm does not have the authority to change your credit report nor should it ever imply it has done so in the past.

Coming face-to-face with financial trouble may seem to be more than you can handle.  Following these simple guidelines when choosing a debt management partner will go a long way in ensuring you final choice is also the best choice for your current financial circumstances.

Thanks for visiting Common Cents Credit Solutions today. Please check our free debt calculator or  fill out our contact form today for more information on our programs. We can help you take control of your finances.