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Debt Consolidation, Debt Management, Life Insurance No Comments »By Andrew Housser
With recent news that the Internal Revenue Service is revoking the tax-exempt status of every one of the 41 credit-counseling agencies ÂÂit has audited over the past three years, obtaining reliable help to recover from debt may be harder than ever.
Good organizations do exist to help consumers, and they will be more than willing to answer a few questions about their business. After all, they are helping people with a very intimate aspect of their lives: their money. Beware of any organization that will not answer or does not provide satisfactory information.
If you’re looking for a trustworthy organization to help win the battle against debt, the seven questions below will help you determine whether a firm is reputable - before you give that company your trust.
1. Does the company get any form of consideration or compensation from the creditors themselves? Many credit counseling firms receive funding in the form of what are called "fair share" payments from creditors. The payments are incentives to get consumers into debt management plans (DMPs), paying back as much of their debt, plus interest, as possible.
2. Is the company a member of the Better Business Bureau? A "yes" answer means the company is willing to have its practices scrutinized and to respond to consumer complaints.
3. Does the company provide actual consultations and provide advice/education to consumers free of charge? Or is the company simply directing every consumer into a DMP?
4. Does the company provide educational material, including budgeting and financial advice, free of charge? Many firms consider educational material as an additional fee source, not as a benefit to their clients.
5. What is the background of the company’s management team? Look for good, relevant education and experience — not a team that jumps from opportunity to opportunity to make its fortunes.
6. How long has the company been in business?
7. What are the company’s drop-out and success rates? Request these statistics. Leading credit card companies report that many credit-counseling firms have drop-out rates as high as 90 percent.
Above all, trust your instincts. If your "gut feeling" tells you something isn’t right with a company, move on. Numerous organizations can help you resolve financial issues - with integrity and skill.
Andrew Housser is co-CEO of Freedom Financial Network, LLC, a national consumer debt resolution firm serving more than 4,000 clients and managing more than $120 million in consumer debt. Housser holds a master of business administration degree from Stanford University and bachelor of arts degree from Dartmouth University.
Source: www.kfor.com 04-07-2006
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Tags: credit counseling firms, debt management plans, DMPs, Better Business Bureau, Freedom Financial Network, national consumer debt resolution firm, consumer debt, Stanford University, Dartmouth University life insurance
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