If your debt situation is too difficult to manage on your own, you may want to consider seeking help from a Debt Management or Debt Counseling Agency. But you need to do your homework before signing up with one of these services.

Many businesses offering debt resolution charge extremely high fees and may even fail to follow through on their services, leaving you in an even worse financial situation. 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. Questions to Ask:

• What amount of total debt is required to qualify for the company's services?
• How is the monthly payment determined? What if the payment is too high?
• How does the company's debt repayment plan work?
• Will the company negotiate with your creditors to lower or eliminate finance and interest charges and possibly waive late fees?
• Which of your debts qualifies to be included in the debt repayment plan? What about debts not included in the plan? Will the company help you plan for payment of these debts as well?
• What happens if you're not able to keep up with the payments and other requirements of the debt repayment plan?
• How will you know that your creditors have received payments? Does the company keep client money separate from operating funds?
• Will you be able to access account status reports? Will they available online or by phone? How often will you be able to access them?
• If you have problems with your accounts or creditors, who will help you?
• Is the personal information you provide to the company secure?

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! See our article "How to Choose the Right Financial Service" for more helpful suggestions. Visit the Federal Trade Commision's site at www.ftc.gov for additional information regarding financial services.