Be wary of debt management and consolidation services

There's no doubt you've heard them on the radio, seen them on TV, or even taken calls from telemarketers about them. The recent economic crisis has resulted in a mountain of companies selling debt management, elimination, and consolidation services.

To us poor souls who are drowning in a sea of credit card debt after losing jobs or struggling with medical bills and unforeseen expenses, the offers sound like salvation. That soothing, yet excited man on the radio promises to get rid of all your problems and save you thousands and thousands of dollars.

But don't be fooled.

It's rare that an advertised debt service is the right answer. The slick promises sound good and if they could be kept, they would be.

The Federal Trade Commission has filed federal district court cases against a number of such services for falsely representing themselves and their fees. The crackdown hasn't slowed the onslaught of advertising, however.

To protect yourself from would-be scammers, here are a few tips:

• Never hand over your checking account or credit card numbers in an initial call or agree to pay a hefty up-front fee.
• Don't give counselors your account details until they have fully explained their programs.
• Don't contract for their services until a counselor has discussed your personal credit situation with you and gone over your options.
• Shop around. Don't agree to work with the first company you talk to. Find out what they're offering. See how comfortable you feel with their representatives. Google the company name and brainstorm other solutions for yourself. Maybe talk to a personal banker at your home bank

-Amanda H. Miller