Debt is a very real problem today and people are looking for answers to their problem. In answer to that outcry, debt consolidation companies have made it their business to swoop in and help their fellow man. Sometimes they swoop in like vultures. Before you look into debt consolidation make sure the company you find is not a scam artist.

Since independent debt consolidation agencies became mainstreamed, the business has attracted many scam artists. Whenever something good comes along there is always a downside. Crooks have found a way to turn your desperation into big bucks.

First, know that every letter or advertisement that claims to want to help you does not. Ask a few questions of these people before you decide to do business with them.

Let us imagine for a moment that there is a man who has a measurable debt. He wants to get out from under so he seeks help from one of the debt consolidation companies that calls his house. They tell him that they can get his debt settled for a fraction of what he actually owes.

The man decides to work with them and enrolls in the debt consolidation program. According to the company, his creditors agreed to one-third of the price paid over a six month span. The man makes his payments starting with a lump sum at the beginning.

He thinks everything is fine until he starts getting calls from the credit card companies. They want their money. The man is confused because he’s been making payments to this agency. When he calls the toll-free number for the agency all he gets is an answering machine.

Don’t let this be you. If you need help and are serious about working to lower and eliminate your debt ask these questions:

1. Tell me about your company and what you can do to help? Any company representative that is not willing to give you thorough information about what they do is a glaring red flag. Any company that wants to do honest business shouldn’t mind telling you what you want to know. Also, if they imply that they can get information removed from your credit report, slam the door. It’s a lie.

2. How much are your services? There will be a charge but not a substantial one. The initial consultation is usually free or a low fee. Beware of hidden fees for processing and other things that can be tacked on.

3. What are your options for handling debt? Any company that only pushes debt management programs in lieu of credit counseling or payment plans could be up to something. Maybe they are getting money to push that program. You don’t want that.

Don’t believe the hype. Check with the Better Business Bureau to see if that particular company has been investigated. Also, anyone that guarantees a debt reduction or help with your credit report is out for your money and should be avoided like the plague.