One of the uses of the signature loan is to pay off debts such as credit card balances and the like. Before you take such a step, there is something you should first consider.

Counseling services are available to help people having trouble budgeting money and paying bills. Credit unions, cooperative extension offices, military family service centers and religious organizations are among those that may offer free or low-cost credit counseling.

Local, nonprofit agencies that provide educational programs on money management and help in developing debt payment plans operate under the name Consumer Credit Counseling Service (CCCS). They are members of the National Foundation for Consumer Credit (NFCC). To locate the agency closest to you, call 1-800-388-2227 or visit www.nfcc.org.

Here's some questions you should ask of anyone providing loan or credit assistance to you:

What services do you offer? Look for an organization that offers budget counseling and money management classes as well as a debt-management plan.
* Do you offer free information? Avoid organizations that charge for information or make you provide a lot of details about your problem first.
* What are your fees? Are there set-up and/or monthly fees? A typical set-up fee is $10. If you're paying a lot more, you may be the one who's getting set up.
* How will the debt management plan work? What debts can be included in the plan and will you get regular reports on your accounts?
* Can you get my creditors to lower or eliminate my interest and fees? If the answer is yes, contact your creditors to verify this.

Before selecting a company to get your signature loan, it is best to compare different loan plans. Services and fees vary greatly, as do interest rates, so compare as many programs as you can.