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Debt Management Services

Debt Management

Commercial debt management services

Despite claims to the contrary, most debt management services are commercial in nature, even those that market themselves as non profit bodies. Commercial debt management services come in a number of guises: debt management groups, credit counseling services, debt negotiation services, debt settlement advisors, Christian debt management groups and bankruptcy attorneys. They all charge fees and they are all in business to make money out of your financial woes.


The best debt management companies cover only their administration costs and can help you solve your financial problems quickly and efficiently; most, however, are commercial bodies aiming to make a profit. The worst of them have pocketed unsuspecting consumers' money and ruined their lives, and in turn, given the debt management industry a terrible reputation. Many of these last companies are being investigated by the Federal Trade Commission.

When considering using a commercial debt management service it's worth checking their fee schedule in detail. Some agencies charge upfront and demand up to three percent of a consumer's total debt in payment. Others take the first month's credit payment as their initial fee, leaving you a month behind on your bills or forced to pay both a creditor and a debt management company.

Consumers should be aware that choosing a non profit debt management company won't necessarily prevent such demands for cash. Some so-called non profits charge extortionate fees or conceal fees as 'voluntary donations'. Upon investigation many were found to be paying their executives hefty salaries. On top of all this many non profit companies just act as a front for commercial payment processing agencies. Being duped into thinking they have your best interests at heart can be a serious mistake.

If you can control your spending, speak to your creditor and plan your own budget you could save a lot of money by avoiding commercial debt management services altogether. However, if you do feel you need the help of a professional to take control of your financial situation take the time to investigate the debt management services in your area thoroughly. Don't attempt to find a quick and convenient solution as it may end putting you even further into debt.

For tips on choosing a debt management company wisely click here.