Choosing the right debt management company is not as straight forward as it may seem. You are after all trusting this company with your financial future, so it’s vitally important to have confidence in the company you choose. Here are ten questions to ask potential debt management companies.

1. What is your experience as a debt management company? Ask all prospective debt management companies how long they have been practicing. You may also want to ask the particular advisor where they worked prior to the company they’re presently with.

2. What are your qualifications and certifications? “debt management” can have more than one meaning. To help define what a debt management company can do for you, ask them what types of certifications or registrations they have.

3. What services do you offer? The available services will depend largely on their certifications and licenses.

4. What is your approach or philosophy to debt management? Debt management advisors are individuals with their own experiences, viewpoints and personality. While there will be some similarities in their educational backgrounds, as individuals they will bring different approaches to how they advise their clients. It’s important that their approach matches your goals and your personality and style.

One great way to broach the subject is to ask what types of clients they typically work with. If these clients mirror your own goals and lifestyle, it may be a good match.

5. Who else from your company will I be working with? Depending on the type of company the advisor works for, they may have other people on your account. If
this is the case, you may want to meet with those other people to make sure it’s a good match. And if your advisor uses outside professionals, like a lawyer, you may want to touch base with them too.

6. How much do you charge for your services? A debt management company should be able to provide you with a reliable estimate of how much they charge for their services.

7. How are you compensated? The way that you pay your debt management company should always be clear and it’s important to get all agreements in writing.

8. Have you ever been disciplined for unethical or unlawful behaviour? Seems like a harsh question, right? Well, after the past few years and all the reports of advisors and planners gone awry, it’s important to make sure you’re hiring someone with ethics and integrity. And a reputable debt management company will have no problem answering this question.

If you’re uncomfortable asking, you can check with the various supervisory entities that govern the behaviour of individuals in the financial services industry.

9. Can I get this in writing? Most debt management companies will already be drawing up an agreement. If you have to ask, then it may be a red flag. At a minimum, the agreement will outline how they will be compensated and whether they will act as a fiduciary with your account.

10. What is the review process? Find out how you’re communicated with, how often you can expect a review and what their general policies and procedures are. Make sure you’re comfortable with them.

Selecting a debt management company is an important decision; you want to be comfortable with your decision. Take the time to thoroughly screen your potential candidates and make sure you’re happy with your choice.

First Friendly are a transparent and open debt management company here to help you with your debt. For more information and to ask those questions please contact our short form at the top right.