Is It Time to Turn to a Debt Consolidation Agency for Help? (cont.)
Contributed by Kris Griebe
Second, find out up front exactly what services you will receive from the agency, such as counseling, a debt repayment plan, and budget advice. The more services, the better. Check what the agency's policy is on privacy. Make sure they don't sell your information. Ask if the debt consolidation agency is a member of the National Foundation for Credit Counseling(NFCC), or the Better Business Bureau(BBB). After all, you're sending them your hard earned money.
A word of warning about using a debt consolidation agency
If you've somehow managed to keep your credit report fairly clean as your debts have spiraled out of control, you need to know that there can be a downside to using a debt consolidation agency. Not every creditor looks upon your involvement with one as a good thing. While many creditors think it's great that you are trying to take care of your debts, others might issue a red flag on your report. This could effect your chances of getting credit down the road in the future.
In your endeavors to find the right agency for your needs, you will run across those that are mainly in the business to scam you from your money. There is no such thing as asking too many questions when it comes to finding a legitimate agency. So don't commit unless you are sure the agency is on the up and up.
