Credit Counseling / Debt Consolidation Questions & Answers
Here are some questions you should think about when considering credit counseling.
1. How large of a client base does
the debt consolidation company have?
The larger any specific debt consolidation firm's client base is the better
because the firm negotiates with creditors to obtain the best terms possible for
their clients. Larger firms carry more clout in the industry that smaller ones
and usually get a better deal.
2. How large is their customer
service department?
When joining a debt consolidation program customer service should be of great
importance to you. If a credit counseling agency says they have thousands of
clients yet only have a handful of people taking calls from existing clients,
something might be wrong. Also, when calling the company did you get a real
person answering the phone? Avoid
companies who expect clients to leave messages or use automated voice mail
systems.
3. How often are payments
dispersed to creditors?
This is a critical question. Make sure the debt consolidation company you are
thinking of joining sends out payments at least weekly. Daily is even better.
Some companies only cut checks on a bi-weekly or even worse a monthly basis,
this will eventually cause problems. If they are a few days late receiving your
payment, it could result in your creditors not being paid for a month!
4. Does the company share
information with creditors or credit bureaus?
Beware of collections companies trying to masquerade as a debt consolidation
firm. The company you hire should represent your interests above all others.
They should not be, or aid, a collections company. The only information that the
company should make available is that you are joining a debt consolidation
program. No transfer of addresses, income numbers, account information, or any
information of any kind should be shared.
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Financial Management / Debt Consolidation / Credit Counseling