Getting into debt is simple. Getting out may require some assistance however. One of the most important aspects in the process of debt help and consolidation is in choosing a debt management company that will help you become debt free in a manner that is right for you. You will need to do some research before selecting just the right debt consolidation company however. The following strategies will assist you in making this important decision:

*Get Referrals

Get referrals from people you know who have successfully recovered from debt by using a debt consolidation company. Ask them to share their personal experiences. You can also research the company on the Internet and see what comments may have been left by past customers.

*Check for National or State Accreditation

Look for government debt consolidation organizations in your area. No organization can guarantee you success, but government and non-profit organizations are more likely to be interested in helping you than they are in making a profit off of you.

*ACCC — Office of Fair Trading & ASIC

It is best to check if the debt consolidation company you are planning to work with has been adversely reported on with ACCC, Office of Fair Trading or ASIC. Make sure the company has minimum or no complaints registered. Before finalizing your decision on a debt management company, make sure that the majority of any complaints against them have been resolved in a satisfactory manner.

3 Things To Do Before Selecting a Debt Consolidation Plan

Managing debt can be a major task. You need to be self-determined and prepared to follow a tight budgeting schedule. There are many ways of overcoming a financial crisis and managing your debt that are followed by various debt consolidation and management companies. Such programs include debt consolidation, debt negotiation, debt settlement, and repayment solutions. Following are 3 steps you should take before agreeing to a debt consolidation plan:

*Profit vs. Non-profit Agencies

The majority of debt consolidation and management companies charge fees. However, it is important to compare all companies before making a commitment. Check out all aspects of the particular business, including referrals, fees, success rates, and their required registrations. Be certain that the company is more interested in helping you find debt relief than it is in making a profit from you. Remember too though the old saying ”˜you get what you pay for’ Companies need to met costs and hire individuals who are experts in their field so that you can access the best possible information and advice, if the fees are just too low or non-existent be wary that the care you get may not be to a high industry standard.

*Written Contract

Get a written contract or an agreement between yourself, the debt management company, and your creditors. Do not make your decision over the phone or after the first conversation. Make certain that you can provide a binding written agreement if conflicts develop in the future.

*Specific Needs

Make sure the debt consolidation program is suited to your needs. The debt management program followed by the company and the options they provide you for becoming debt free are of extreme importance. Does the company provide you with enough options to improvise your debt? In addition, your creditors must agree to the debt management plan provided by the company.

5 Tips for Successful Debt Management

Educating yourself about debt management and learning how to properly manage your existing funds and personal loans can be the first step to total debt relief. The following tips will help you to better understand debt and money management so that you can get started on the road to debt relief and financial freedom:

*Borrow Money Selectively

If you find it is necessary to borrow money or take out personal loans, be careful about how much you are borrowing. Only borrow an amount that you feel you will be capable of paying back in a reasonable amount of time. Think ahead by averaging in extra costs on large purchases, such as taxes, maintenance, and insurance.

*Use Credit Cards Wisely

Use wisdom when making a purchase with a credit card. A credit card should only be used on purchases that you feel you can pay off in a reasonable amount of time. In an effort to avoid late charges and extra interest rates, do your best to pay off the balance you owe in full every month.

*Make Regular Payments

If you arrange to pay a specified amount each month to pay off debts and personal loans, you are more likely to get them settled quickly. By making regular payments on your existing debts, you will save money on additional fees and interest rates, as well as raise your credit rating.


Overspending is easy to do without proper budgeting. Devise a record of your monthly expenses, including current debts and your personal income. Determine what you can afford each month based upon your income and stick to a plan. Keeping track of your expenses and income can greatly reduce overspending and the need for taking out personal loans in the future.

*Open a Savings Account

Once you have devised a budget plan and learned to stick with it, take any extra income you may have left and put it into a savings account. While it may be tempting to spend that extra money on items you don’t really need, you will benefit much more by placing it safely in a savings account. Building a savings plan will also greatly help towards eliminating the need for borrowing money in the future and creating further debt. Additionally, you will have peace of mind in knowing that you have a little extra put away in the case of an emergency.

Do you need help in debt consolidation management? Call us at 1300 332 834.