What to look for in a debt relief service, and things you most definitely need to be wary of.

As you look into employing some sort of debt management service to help you pay off your credit cards and other loans, you will find that many of them just want to make money off of you. But there are some legitimate operations that can genuinely help you. The key is knowing the difference.

Here’s some quick items to look for when considering an outside debt relief service.

• Does it belong to the National Foundation for Credit Counseling or a similar, reputable national organization?

  How does it rate at the Better Business Bureau?

• The entirety of your monthly payments as part of your debt management plan should go to your creditors.

  Some debt relief service organizations take your entire first month’s payment as a “fee.” Expect to pay a fee for debt management services, but it should be much, much lower than that.

  A startup fee of $30-$50 is reasonable, as is a monthly charge of no more than $50. Your entire first month’s payment - or several hundred dollars, is an absurd amount to be a “fee.”

• Any debt relief service that makes promises that sound too good to be true is just trying to take your money.

  If a credit counselor promises they can fix your credit report, run the other way. The only way for a negative item to be taken off your credit report is if it’s inaccurate, PERIOD.

  Any company that says they’ve “worked out an arrangement” with the credit bureaus is lying, plain and simple.

• Find a counselor who is truly concerned about your situation.

  If it seems like your counseling sessions are rushed or unsubstantial, look elsewhere. Your counselor should ask enough questions to truly grasp what’s happening with your personal finances.

• What services does the debt relief service actually provide?

  A good one will provide sessions on budget management and other topics that can help you improve your finances. A bad one just wants to set up a debt management plan and be done with it. Doing that might pay off your debts, but it doesn’t change your overall spending habits, so the problem isn’t really solved.

• Will the service deal with ALL of your creditors?

  Some of these agencies won’t work with certain creditors unless the creditors agree to particular financial terms. You want an agency that will at least try to negotiate with everyone.

Above all else, choose an advisor that is open, candid, and transparent. Your counselor shouldn’t hesitate to answer any and all questions you have about how the organization works.

You should definitely ask questions, as many as you can think of, to ensure the organization you’ve chosen is the right one. You can go to www.nfcc.org to locate the nearest debt relief service affiliate in your area.

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