5 Questions to Ask Before Signing Up with Any Debt Reduction Company

If you’re deep in debt and having trouble making ends meet, getting help is a good idea.  There are lots of good debt reduction companies out there ready to help you get your finances back on track.

But sadly, there are many of them out there who will be quick to sign you up as a client - then drop the ball when it comes to servicing you.  There are steps you can take to minimize the chances of getting stuck with a “dud” and improve your chances of getting the help you really need.

Here are 5 questions to ask before signing up with any debt reduction company:

1) Can I contact some previous clients?

Forget about those meaningless testimonials that many businesses post on their websites with quotes from “Mary in Texas”.  You want actual names with contact information.  Then contact those people and ask them about their experiences.  If the company cannot provide this information, then ask them for copies of letters actually written by happy customers.  Sure, it’s possible to fake these too.  But chances are these letters are real.  Any signs you can get that a company is legitimate are worth asking for,

2) Are you in good standing with the Better Business Bureau?

While the Better Business Bureau may not be perfect, and only stores information on a company that consumers report (and not everyone reports bad service) you can use it as a comparison tool.  If a company’s BBB report has dozens of complaints about poor service and not doing what they promised to do, drop them fast!  And go and find another company.

3) Will I get everything in writing to review BEFORE I must sign up?

Not only should you get the contract in writing, you should read it.  And do your best to understand it.  If you don’t understand it, ask.  And if you don’t get the answers you need, take your business elsewhere.  It’s your money.   And your credit at stake, don’t trust your finances to just anyone.  Make sure you feel 100% comfortable with any debt reduction company before you sign up.

4) Will somebody be assigned to work with me so I can get my questions answered by someone who knows my case?

Not all companies will assign a single person to work with your account.  Sadly, that doesn’t happen often these days, especially with bigger businesses.  But at the very least you should find out the hours that you can reach someone, can you correspond by email if you prefer, get a toll-free number to call, etc.  The more ways you can reach them, the better the chance you’ll get a response.

5) What do you offer that the other companies out there do not?

(And shop around and compare to make sure it is true!)  Debt reduction is not “rocket science”.  The process is pretty similar no matter which company you use.  But if the company just started doing business last week, or makes bold promises that sound “too good to be true”, or can’t explain why you should choose them over some other company, then you’re probably better off to continue shopping around.

If you want to give yourself the best chance of not getting ripped off, ask all 5 of these questions.  And if you don’t get a good answer to one or more of the questions now, before you sign up, don’t be surprised if you don’t get  good answers once you are a client.  And then it will be too late.  So make sure you research a debt reduction company very carefully before you sign up.  Just like you should with anyone you hire to perform a service for you.

The creditors won’t care who you are working with if your payments get lost, or they don’t get their money.  The accounts are still in your name and are your responsibility.  So if your debt reduction company signs you up then is too busy to keep on top of your case, and disappears into thin air, you’re stuck.  So it’s well worth your time and effort to find the right company first so you don’t get burned!

Struggling with too much credit card debt?  You’re not alone!  Learn how debt settlement can help you avoid bankruptcy and get out of debt faster!  Learn more helpful debt relief strategies from www.debt-tips.com