How can you tell a good debt consolidation company from a scam company? There are certain tell tale signs that you can look for. Research is the best option to find out about a debt consolidation company. You may further take a look at the following tips:

• Research is the best way to find out. When you have narrowed chosen a company then check if the company is legitimate or not. You may check with your State Attorney General's Office (AGO) as well as the Federal Trade Commission. You may also check with the Better Business Bureau to find out if there is any complaint against the company you have chosen. Even if you have looked for online debt consolidation make sure you have enough information about the company.

• The debt insurance company would only ask for your creditor's name(s), balances and interest rate. If the company is asking for your social security number or any other personal information, beware!

• All debt consolidation program would offer the same rate because they receive the same deal from the credit companies. If you get to pay lower monthly payments, it might be because your creditor is charging a higher rate of interest.

• Look out for any hidden charges. Many debt consolidation companies might suddenly ask you to pay a service charge in the middle of their service. So beware of extra fees since these companies charge you usually 10% more than what they send to your creditors and in many cases they also get a discount back from them.

• Do not sign a debt consolidation program immediately after hearing one. Take your time (not too much) to decide on a program. Think over it and then go back to sign on the documents if you want to.