Understand the company's rates and fees and know

Understand the company's rates and fees and know what type of rates are reasonable. A set-up fee in excess of a $100 should be cause for concern, for example. Similarly, a monthly fee higher than $50 is unreasonable. Call around to several different companies before settling on any one in particular.

Do not get involved with a debt counselor that works for a company that pays by commission. This is a red flag as it's going to alter your situation according to the best interests of the debt counselor and not your best interests. Instead, look for a reputable company that pays their counselors accordingly.

Look for individualized payment plans with any potential debt consolidation company you seek to do business with. Your situation is going to be very different from someone else and the company should take that into account. Instead, you should locate a company that gives you individualized payment plans. While they may seem costlier off the bat, they will generate long-term savings.

Learn about the privacy and security practices at any debt consolidation company you consider. It's important that you know that there is a policy in place, even if it's not something you think about all the time. You are going to be giving them very personal