Choosing a credit counseling agency or debt management company is a big decision. After all, this is someone that you are going to spend a lot of time with and share a lot of your best kept secrets with. You have to comparison shop. Look at all the offered services and fees charged. You should be able to find a decent and affordable credit counselor. There are many companies that charge large fees and promise unattainable results. Remember, you don't have to pay a lot to fix your finances. If you are in trouble, you shouldn't be expected to go further into debt to get out. Make sure that everything is disclosed in writing before you chose a service to work with. And ask about fees that go beyond the debt management plan. You will probably want budgeting advice and financial education once you are getting your finances back in order. Find out how the agency or company is funded. Not every non-profit agency will have your best interests at heart. There are some non-profit credit counseling agencies that are run by those looking to profit. And non-profit does not mean cheap, affordable or good service. Many non-profit agencies actually charge high fees. You want to contact your state attorney general's office to check for any pending investigations against the company. You can also contact the Better Business Bureau to see if there are any consumer complaints on file. Check for licenses and accreditations. You want to find counselors that are thoroughly trained and certified. The Members of the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies both consist of accredited agencies with certified counselors. Find out how much time the agency is willing to spend with you to straighten everything out. You should never feel pressured to make quick decisions. There are no quick fixes to financial problems. You should feel pressured or rushed. The decisions you make should be made confidently and with all information considered. You want to find a credit counselor that is patient, listens and then presents you with a plan of action. Without knowing your full situation, they can't make an accurate suggestion for fixing it. Don't think that you have to have a credit counselor to negotiate with your creditors. Simply call them and let them know you are having problems and ask for help. You can call the bank in charge of the card directly, and not just the 800 number. They may offer you a program that helps with debt reduction. Make sure that you shop around and compare all your options before you chose who to work with. Remember, you are giving the company full access to all of your financial information. Make sure that they aren't just total strangers. |
