Debt has become a major problem and many people are looking for help to get out from under their personal debt.
In response, debt consolidation companies have sprung up to help.
Unfortunately, with the good often comes the bad.
Some independent debt consolidation companies take advantage of people with problems, so you need to be sure the company you seek out is not perpetrating a scam.
The first caution is to keep in mind that not every advertising claim or offer to help is what it appears to be.
Be sure to ask plenty of questions before you put your trust in any company.
If you are struggling with debt, you may be tempted to accept help from a debt consolidation company that telephones you with an offer.
Typically they tell you they can negotiate with your creditors and reduce your debt to a fraction of what you owe.
If you agree, they may give you monthly payments that total less than half of what you owe, and ask you for a larger lump sum for the first payment.
Now suppose you start making these payments, and stop paying your creditors because you think everything is all set.
But then your credit card companies begin calling you because your payments are past due.
It is a scenario that plays out all too often: The victim calls the number provided in that first phone contact only to get an answering machine or even worse, a disconnected number.
Here are some questions to ask to help avoid being scammed.
Honest companies willingly answer these types of questions.

1. Tell me about your company and what exactly will you do to help me get out of debt? If a representative can't or won't reply to your satisfaction, it's a red flag.
   
2. What are your fees? There will likely be a fee for service and it should be disclosed up front.
   Be on the look out for hidden processing fees or other added charges.
   
3. What options are there for handling debt? Credit counseling, budgeting, and money management training options should be made available in additional to or instead of debt consolidation.
   Be cautious about companies that only seem to push debt consolidation.
   

Be wary of guarantees to reduce your debt by a specific amount or promises of improved credit reports.
Most importantly, don't let anyone push you into anything.
If you aren't comfortable with the representative and the information you are getting, do more research before deciding to use the service.
Check out the company with consumer protection organizations like the Better Business Bureau and your state's consumer affairs division.
There are many legitimate and helpful services available to help you out from under your debt.
Take the time to find them and avoid being taken by a scam.