Debt Consulting

shutterstock_66028309-300x300Still, once you have decided upon a specific approach to follow, there are a number of warning signs to look out for when selecting your debt management company, and we would merely like to delve into a few of these threats. For one instance, you should always ensure that whichever firm you have considered working with requires all of the following data before they offer any sort of estimate: identity of each lender, the interest rates of each accounts, minimum (and, under unusual circumstances, maximum) payments requested from each lender, past and current late payments as noted (or about to be noted) upon your credit report, and, as well, any significant account activity which may include balance transfers or relatively greater purchases in recent years. If the company happily provides a quote without such information, this should seem highly suspicious to the borrower.

Even after a cursory analysis of the household’s financial information, legitimate debt management companies should be loathe to give much more than the vaguest of quotes – certainly not a complete good faith estimate – and, whenever businesses blithely pretend to know how much their services will cost before looking closely at all possible difficulties – red flags should dance before borrowers’ eyes. By all means, if the debt management professional begins to talk about your eventual payments and what they would hope the interest rates would be during the initial consultation, feel free to gather your paperwork and walk away.

At the same point, of course, while it is necessary to offer this information to your prospective debt management company during the application process, one shouldn’t just hand out your most personal financial data before making absolutely certain that the company is one to be trusted. Even beyond the question of honesty – as happens, many debt management companies will share such information with bill collectors and predatory credit card companies all too ready to shove near fraudulent balance transfer offers down the debtors’ metaphorical throats – there’s a separate issue of experience and competence.

Your authors have known overworked debt management companies that simply threw out their past files into recycling bins outside the office! In this era of widespread identity theft, keeping such information private couldn’t be of more grave seriousness, and you simply have to make sure that your social security number and similar data will be properly disposed of. In fact, you should have the debt management professional you consult with give you assurances in writing about their organizational guidelines regarding the destruction and confidentiality policies regarding client documents before handing anything over. For obvious reasons, your debt management partners will need to trade this information with the lenders that they will need to deal with over the course of debt negotiation, but representatives of those credit card companies should be the ONLY ones to be given access to such incredibly sensitive data.