Have you heard claims from a debt management company that they can stop those creditors from calling and that they will clean up your credit among other things? If you are in need of financial counseling and assistance due to burdensome debt, you may be thinking about calling a debt management company. While there are some helpful and legitimate companies out there, there are many that are just out to take advantage of your situation and that will use any means possible to get your money. So, if you want to find a good debt management company what do you look for?

Non-profits are good arent they? Sometimes. While many debt management companies loudly claim their non-profit status, they are making a very good profit. Some of the CEOs are making hundreds of thousands of dollars each year. They make their money by asking for a voluntary donation when you sign up with the debt management company. Do not pay more than $50 dollars for this fee. You can check with the Federal Trade Commission to see if they have any information. Part of the problem with some of these debt management companies is that they change names so quickly it is hard to keep track of them.

They should not ask for money up front before they do anything for you. You should see some results first. If they promise that they can clean up your credit report you will know that they are lying-no debt management company can do that. You must do it yourself with time, patience, and sound financial decisions for many years.

If anything sounds illegal, it may be. You may be told that you can get a clean slate on your credit, by starting over with a new identity. All you have to do is get an identity using an employee ID number instead of your social security number. This is not true and it is illegal. If you participate in any illegal activity, even under the direction of the management company, you can be implicated and charged.

The company should be willing to spend some time with you to fully assess your situation and help you work up a plan to get your finances back in order. It should not be a 30 minute in and out the door visit. Dont give them the benefit of the doubt. Check them out thoroughly before you use them.