- 1). Check to make sure the company is legitimate. Call your state's attorney general's office and the Federal Trade Commission. Check with the Better Business Bureau to see if any complaints have been lodged against the company.
- 2). Keep your financial information private. To provide a quote, a debt consolidation program only needs to know your creditors' names, balances and interest rates. They do not need to know your account numbers, Social Security number or other personal information.
- 3). Compare fees — not monthly payments. You should receive the same rates from every debt consolidation program because they all get the same deals from creditors. If one company is offering you a lower monthly payment, it may be because it is extending the period of the loan. This may cause you to pay more in the long run.
- 4). Beware of extra fees. Do not pay for a quote or analysis. Many debt consolidation services charge high up-front fees or hidden fees that will pop up months after you begin. Some fees are built into the monthly payment. They take a payment from you and send it on to the creditors. Some agencies charge you as much as 10 percent more than what they send the creditors. Then they also get a 10 percent to 15 percent rebate back from the creditors.
- 5). Take a moment. Employees at many consumer credit counseling services are taught a script to play on your emotions and fears. When you go to talk to a counselor, take a friend who will promise to keep you from making an immediate decision to sign up. Tell your friend to make you leave and come back after you have talked it over and looked at all the details.
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