What to Look for in a Debt Management Program

Everyone probably has debt. In fact, a survey shows that at least 70% of American households have credit card debts and this is because they spend more than they earn. If you are looking for a way to achieve debt relief, debt getting a debt management program might just be the best way for you to achieve a debt-free, worry free life.

If you have debt, you are probably always facing a barrage of phone calls from collection companies right now. Your first impulse might be to ignore these calls as we sometimes ignore the unpleasant things in life, hoping they would just go away. But these debt collectors wouldn’t go away. They will hound you and the best thing to do would be to face them now before things go worse. The best thing for you to would be to get into a debt management program. What are debt management programs anyway?

Most of your creditors wouldn’t want to settle your debts with you. They would want to bring a third party into the scene and most of the time, these are debt counseling agencies with debt management programs. These agencies will be the one to negotiate with your creditors and will be the one to budget your monthly payments in case you have a number of debtors. On top of that, they provide counseling to make sure that you don’t go back into the same routine again and even get deeper into debt.

However, not all debt management programs and debt counseling agencies are created equal. There are those who are better at helping you and here are some of the ways to find them:

A good credit counselor

A debt management program is indeed catered towards helping you pay off your debts but most importantly, it should incorporate a program that will help you better manage your finances. As such, a great program should be carried out by a good credit counselor who will help you budget and explore other options when it comes to debt relief.

Licensed and accredited

There are a lot of scammers online posing as the solution to your debt problem. The best thing to do would be to make sure that before you get into any of their programs, they are accredited and licensed by your state just so you are sure that you are dealing with a legitimate company. The last thing that you need is to get scammed out of your hard-earned money and find out that your creditors haven’t been receiving any of your payments and you now have to face a huge amount of penalty fees and other charges.

No or minimal upfront fees

Most agencies ask for an upfront fee before you can enroll in their debt management program. The average upfront fee is $50-$100 dollars, don’t pay any more than that. Also, don’t get tricked into paying an acceptance fee, and then an application fee, and then a consultation fee and so on.

There are a lot of credible, trustworthy agencies out there. Just do your research and you should be able to find one that could help you achieve a debt-free life.

If you think this article is interesting, you may be interested in this Debt Collection article.