Consumers resolving to pay down their debts in the new year are being warned to avoid being taken care of by unscrupulous debt management services.

This week, Washington Post financial columnist Michelle Singletary spoke with the National Federation for Credit Counseling (NFCC) about some of the red flags consumers should be aware of.

Singletary warns that consumers should be especially careful about any company that initiates contact with them, since it's likely they are working from purchased mailing lists of consumer facing debt trouble.

"Companies target vulnerable people who are desperate to get out of debt and make the collection efforts stop," Gail Cunningham of NFCC was quoted as saying.

Consumers are also widely advised to steer clear of any debt management company that requires a substantial up-front payment for their services, or in some cases, just an initial consultation. Another major red flag is any company that advises giving them power of attorney or which suggests consumers should stop communicating with creditors and paying their debts directly.

One way to avoid such pitfalls is to contact a non-profit credit counseling service. A long-term debt management strategy is also important. In many cases, consumers can save money by using payday loans to meet their payment deadlines as opposed to paying credit card late fees and higher interest rates.

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