Free vs Paid Debt Management Services

When a person finds himself deeply in debt and needing some relief from the burden, he is faced with the question of whether he should use a free debt management service or a paid-for debt management service.

He will ask himself whether it is true that you get what you pay for, or if he is paying for something that he can just get for free. After all, this individual is already deeply in debt and certainly doesn't need another one to add to the ones he already has.

Many debt management services advertise their debt counseling services for free. A counselor will collect information about the person, his debts and his income. The counselor will then make recommendations to the debtor concerning possible remedies for his financial situation. So far, everything has been free -- but now comes the tricky part.

The fees that will be charged for actually helping the debtor put the suggestions made into action can be small, large, or exorbitant. Before you engage the services of any debt management company, you need to know what the fees are for the services beyond just the counseling.

Choosing the debt management service might be the first step on the road to successful debt management for a debtor. It is time to do your research and ask the questions BEFORE you sign up.

The BBB (Better Business Bureau) is a good starting point. You can find out (for free) whether there have been any complaints filed against the debt management company that you are considering using.

The next step is to check with the Attorney General of the state in which you reside to find out if the company you are considering is licensed to conduct business in your state.

Finally, you need to find out if the company you are considering has the ability to deal with all of your creditors or only a few of them.

Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at: