Judging debt management fees can be difficult!
The problem for a consumer with choosing a group, company or person to help with debt problems relates simply to stress.
For many people, by the time they go and visit someone with expertise in this area, they are already in ‘too deep’. By this time, they might have bills coming due or overdue, perhaps missed payments and possible legal action underway. This would be a stressful time for anyone.
Unfortunately, not only is this a stressful, time is limited. If debt collectors are calling on a regular basis, or legal action is underway, there is very little time for ‘shopping around’ to get the best deal or find people that you like and feel you can trust. They may also be working a second job to help balance the books. Instead, people need help and they need it NOW!
This means that the first person they meet is likely to be the one that ultimately helps with their debt dilemmas. This will often make choosing a professional and comparing debt management fees very hard.
Finding The Right Debt Management Service
The professional that you meet will be a fairly good salesman and this skill combined with your need to take action yesterday and desire for help will make making a sale relatively easy.
In other words, you probably have not read your contract very well (if at all), and have only a very limited understanding of the terms and conditions that you have agreed to.
You don’t need me to tell you that this is not exactly ideal.
Therefore, it is important that you think clearly when you meet a debt professional and read the fee structure closely and carefully. It might be an important and expensive mistake if you don’t!
You need to understand how much is charged as a retainer / deposit in advance, how much per month, what terms will cause you to lose your deposit and what work is expected and guaranteed by your adviser. If you can, ask lots of questions. Make your adviser work for his (or her) fee and know that you don’t plan to take any nonsense.
You might also like to try and negotiate your fee structure. Why not? If you are visiting, you have money problems, so will it really hurt to ask?