Larry
Tacoma,#2Consumer Suggestion
Wed, August 27, 2003
I have been in the consumer finance industry for a long time. Over the last five years there has been an explosion of new debt management companies accompanied by heavy advertising. Many of these companies are legitimate operations and are able to help people reduce debt by essentially being the "middle man" between consumer and creditor. Here are a few tips to follow to reduce your chances of ending up here with your own horror story: Try to handle the problem on your own. Take time to research refinancing options, explore ways to reduce spending on non essentials, and contact credit card companies and ask them to reduce interest rates. If they don't then shop around for a balance transfer at a lower rate. I know debt is much more complex than the three items I have listed above but it is just the general premise that I am recommending. If you decide to go with a debt management company take time to research them. Talk to several NON PROFIT debt mangement companies. Write down all your questions before you call and don't hesitate to ask them anything. If they seem to avoid certain questions or you just don't feel comfortable with them chose another company! Call your states Attorney General's office and see if they are in good standing. Also check things like this website or the BBB for any other information available. Once you begin a program make sure you follow up with your creditors to see if they are getting proposals, payments etc... . The thing that gets most people in trouble is they just hand the accounts over to a debt management company and don't look back. If you do that and there is a problem, you're 30 plus days behind on all your bills in the blink of an eye and the nightmare has begun. If your getting collection calls don't refuse to talk to the creditors representitive. Explain to them who your working with and let them know when the proposal or payment is supposed to be going out to them. Don't be afraid to call your debt management company as often as needed to follow up. Remember, you are their customer and you are paying for their service! The key is follow up. Follow up daily with creditors if necessary until the program is up and running then check on it from time to time. If you have been on a program for a while and out of the blue you receive a collection notice or a collection call respond to that creditor right away to see what the problem is. Then call your debt management company immediately to see what has caused the problem. Remember this is your debt and ultimately you will be held responsible if there is a problem. The debt management company will say they assume no liability. If your ceditors are not getting paid after 30 days and you are not getting an acceptable response from your debt management company, stop giving them money!!! Hope some of this info can help. Remember to follow up!