Here is a brief outline of the basic, but very important questions you must clear out with the credit counseling agency before you sign any debt management contract with them.

First of all, ask them about the full list of services they offer. The best choice would be the debt management organization that provides a wide range of services in the area of credit counseling. These may comprise budget counseling, debt management plans, debt management courses, saving classes, consumer credit sessions with certified counselors. Your counselor has to provide you with a full comprehensive analysis of your financial situation, work out with you an individual get-out-of-debt plan and work out a savings strategy to avoid debt problems in future. The first session with a debt management counselor usually is one-hour long, then you will be offered a follow-up session. If an organization offers you a debt management plan as your only way out of debt, without carefully reviewing your financial situation, it is better to avoid dealing with this company. Remember, that debt management plan doesn’t help everyone with debt problems. Only when a professional and licensed debt counselor spends significant time with you on your financial situation and draws a conclusion that a debt management plan really is for you, should you sign up for it.

Second, ask the agency if they are licensed to provide credit counseling in your state? Because some states require these agencies have a license for credit counseling. So, if the agency is not licensed it is better to avoid dealing with them.

Third, ask if the agency offers anything for free, i.e. first session, credit counseling classes, and moreover information about the full range of their services. If they charge even for that – avoid them.

Fourth, always demand a written contract or signed agreement between you and the agency. Never engage in any debt management plan based on oral agreement or over the phone.

Ask about the qualifications and certificates of the counselors themselves, ask about the credentials and testimonials of other customers. Bother to get to know the opinion of other clients of this agency.

Do ask about fees and charges, because it is important. Many agencies conceal the fact they charge some 10% from your each monthly payment, i.e. your creditors get less. And last, but not least, ask about privacy policy – how they keep your personal and financial information secured.