If you are considering hiring a debt consolidation company, be aware of the key questions to ask. I have gathered a list of questions over the years. 

Ask: 

How long have they been in business? 

Are they a corporation? 

Do they have references?

Learn more about their practices on Google and the Better Business Bureau. Read their reviews.

Ask them to email you a contract so you can review it thoroughly. Look at their services carefully. Draw up a list of questions. 

What is the cancellation policy outlined in the contract, and will I receive a refund? 

What money exactly will be refunded? 

Find out what their Monthly fee is.

Ask them to explain their method of negotiation. 

Is it with one creditor at a time? What happens to the other creditors during this time? 

Can the creditors report defaults on your credit reports? 

Can creditors sue you in the interim? 

Ask how the settled debt will appear on your credit report. Will it appear as paid in full?

Ask how long it will stay on your credit report. 

Is there a ‘stay’ on creditors contacting you, similar to the one in bankruptcy filings? 

Ask them how your debt forgiveness will affect your taxes. Ask them to explain what a 1099-C is. 

Ask them what the advantages of hiring a debt consolidation company are over filing for Bankruptcy.