If the credit-counseling firm you hire messes up, it's yourcredit that takes the hit. Not to mention that one firm might chargeyou hundreds of dollars more than another agency doing exactly the samething.
So it pays to shop wisely. Ask the right questions before yousign on any dotted lines.
"Understand what you're entering into," says Robin Holland,senior vice president of customer service at Equifax, acredit-reporting agency. "It's important for [consumers] to be educatedand to do their homework."
The Federal Trade Commission recommends consumers askproviders of debt-management plans the following questions beforeagreeing to a plan:
- How much do I have to owe to use your services?
- How do you determine the amount of my payment? Whathappens if this is more than I can afford?
- How does your debt-repayment plan work? How will I know mycreditors have received payments? Is client money put in a separateaccount from operating funds?
- How often can I get status reports on my accounts? Can Iget access to my accounts online or by phone?
- Can you get my creditors to lower or eliminate interest andfinance charges or waive late fees?
- Is a debt-repayment plan my only option?
- What if I can't maintain the agreed-upon plan?
- What debts will be excluded from the debt-repayment plan?
- Will you help me plan for payment of these debts?
- Who will help me if I have problems with my accounts orcreditors?
- How secure is the information I provide to you?
Bankrate.comis the Web's leading aggregator of information on financial productsincluding mortgages, credit cards, new and used automobile loans, moneymarket accounts, certificates of deposit, checking and ATM fees, homeequity loans and online banking fees. Visit Bankrate.comto get the tools and information that can help you make the bestfinancial decisions.
