Questions to Ask a Debt Manager

Debt is a problem for millions of Americans, and most of us are going to find ourselves facing some kind of debt at one point or another. During these times, making the right financial decisions can be crucial and many people do not know how to effectively reduce or manage their debt. Rather than trying to face debt on your own, it is often wise to consider hiring a professional to help you make the right decisions with your money and avoid sinking further into debt, requiring a more extensive debt payment plan. However, it is important that you hire the right professional or company to assist you with your debt, and the following are some of the questions that you will want to ask a debt manager.

How the Program Works

When you hire a debt manager or enter a debt management program, you are typically going to be paying money to enter into the program, and the debt manager is going to be working with creditors and your finances in order to help you get out of debt by a certain time. These programs have become very popular in recent years, but it is important that you choose the programs that are going to be run by responsible and ethical companies. In order to find the best options, one of the first questions you should ask is how the money is used and distributed to creditors. By understanding the way that you money is used, you can better understand if you are wasting your money on the program.

How They Are Paid

A good question to ask a debt manager is how they are going to be paid. Some of these managers are going to be paid on commission, and they will receive a larger commission if they can sign you up for a longer amount of time or for a larger rate. Some commission based companies are very unethical in that their pricing and therefore their commission will be determined by how bad your debt is and how desperate you may be. For example, some of the companies will charge some customers $3000 for their program, but will charge others $10,000 just because they are deeper in debt and need the program even more. When you use a manager that does not get a commission, you can avoid some of these problems.

Business Background

Some other questions that you will want to ask a debt manager will deal with their actual business and their qualifications. Some of the more fraudulent companies will hire untrained individuals to enroll people into their programs, and you will want to be working with a debt manager that actually has the right certification and training. Before hiring a debt manager and starting a program, ask them about the licensing that they have received and the education that they have completed. In addition, potential customers may want to ask if they can contact a former customer in order to get a third party opinion about the company. If you find a debt manager that is not willing to give you the contact information of a former customer, that is a pretty bad sign.

When you are comparing your debt management options there are obviously a few questions to ask a debt manager, and people that are looking for the best prices and service will want to do their research. Do not get ripped off and go further into debt by enrolling in a bad program. Do your comparisons today, ask the right questions, and hire a professional debt manager.