What Is A Debt Management Company?

A debt management company helps you handle your debt by taking a single monthly payment from you and distributing the funds amongst your creditors. The company negotiates directly with the lenders in the hopes of reducing fees and interest rates.

What Is A Debt Management Program?

A debt management program as a confidential plan designed to provide a solution for your individual financial situation. A debt management counselor will do an intake with you to figure out your monetary picture, and then work with you to create a sustainable financial plan. They then contact your creditors in order to negotiate the terms of your debt, consolidating what you owe and figuring out a manageable monthly payment.

Do I Need A Debt Management Company?

Debt management isn’t for everyone. If a debt management counselor decides you have too much debt, they will not take on your account. You must also be committed to controlling your spending. There’s no point in setting up a debt management program, only to get into more debt.

If you decide debt management is not for you, you might consider debt-help products such as a debt consolidation loan or a settlement with your creditors. Try contacting your creditors individually and negotiating settlements without the middleman.

Video: What to Ask to Find Out If A Credit Counselor Is Right For You

How Do I Find A Debt Management Company?

If you know someone presently using a debt management company, ask them if they would recommend the company’s services. You can also research companies over the internet. Make a list of several reputable-sounding companies, then check their credentials through the Better Business Bureau to make sure there have been no complaints filed against them.

What Should I Look For In A Debt Management Company?

Since the debt management industry is relatively unregulated, the Federal Trade Commission has received a significant amount of complaints about unscrupulous firms, some of which have been found to charge exorbitant fees or neglect to pay creditors in a timely manner. Make sure your debt management company is a member of the American Association of Debt Management Organizations. Talk to current customers and run companies through business-review sites to get candid assessments. Choose a local company that is convenient to your home or business, and make sure the company you choose does in-person meetings, as opposed to email-only consultations.

Video: Understanding Debt Management

Debt Consolidation Companies

This is by no means an exhaustive list, but here is the contact information for several debt management companies. Remember to do your own research before signing on the dotted line.

American Credit Counselors, Inc.
23123 State Road 7
Suite 210
Boca Raton, FL 33428

Clearpoint Financial Solutions, Inc.
8000 Franklin Farms Drive
Richmond, VA 23229

Debt Free
1148 W Baseline Road
Mesa, AZ 85210

American Consumer Credit Counseling, Inc.
130 Rumford Avenue, Suite 202
Newton, MA 02466

CareOne Services, Inc.,
8930 Stanford Blvd.
Columbia, MD 21045