Many debt consolidation and counseling agencies are scams set up to funnel your money into large profits for the company, while driving you further into debt. Even non-profits can be a scam, some will funnel money into for-profit companies all the while saying they are aiding you in paying down your debt.
Below you will find a few clues to know when a debt counseling/ consolidation/negotiation company should be avoided. Avoid if they:
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offer you a "one-size-fits-all" debt consolidation plan
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require monthly service fees to their company, or any other fees not associated with your debt situation.
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insist/require all payments of debt go through their company rather than straight to creditors.
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guarantee you that they can remove accurate information from your credit report.
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inhibit communication between you and your creditors.
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make promises that you will not have to pay the majority of your unsecured debt.
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