If your financial solution is becoming difficult to manage on your own, seeking the services of businesses offering credit and debt help may seem like a great solution. But you need to be careful when choosing these services.

There are an ever-increasing number of debt and credit agencies offering too-good-to-be-true solutions to your financial problems. But remember, if it sounds too good to be true, it probably is! Many businesses offering credit repair or debt resolution charge extremely high fees and may even fail to follow through on their services, leaving you in an even worse financial situation. Other businesses may misrepresent the terms of their service, neglecting to disclose certain costs or explain the complete terms of the agreement.

Before you sign up, use the following questions to help review each company, the services they offer, and the terms of the agreement you may be entering in to. Compare several companies before choosing to do business with any organization.

Things to Consider:

• Do a quick background check on the company with your state Attorney General, local consumer protection office and the Better Business Bureau in the company's location. These agencies should be able to tell you whether other consumers have filed complaints about the company.
• If a business is reputable, they should send you free information about their company and the services it provides without first requiring personal information or any details about your financial situation. If a company refuses to provide this information, consider that a red flag and look to someone else for help.
• Get everything in writing. Never rely solely on a verbal promise.
• Do your homework by educating yourself fully, then use good sense when entering any financial arrangement.

Questions to Ask:

• What are the services offered by the company, and how can they help my situation?
• What are the fees and other costs for the company's service? What are these fees based on? Will I be charged anything before the company actually can/will help me?
• Will there be a formal contract or written agreement?
• Will I be working with one dedicated agent or several different agents? Are the agents of the company certified or accredited? If not, what kind of training do they receive?
• Who regulates, oversees and/or licenses this company? Is that company regularly audited? Where does that company receive their funding? Is the company a for-profit or non-profit organization?
• What educational materials does the company offer? Will they send them to me, or are they accesibly on the Internet? What is the cost for these materials?
• After solving my immediate problem, will the company help me put together a plan for avoiding future problems?
• What is the company's privacy policy? What assurance does the company offer that all information about me, including my address and phone number, will be kept confidential?

Visit the Federal Trade Commision's site at www.ftc.gov for more useful information regarding potential scams and how to protect yourself against them.