Many people face financial crises at some point in their lives. Credit counseling agencies work with individuals to help solve their financial difficulties.
Credit Counseling – Local Agencies
- Interview with several agencies to choose a credit counseling service.
- Ask each agency, if it is a nonprofit organization, what services are offered and the amount of the services cost.
- Find out if your consultants are certified and if the agency services are confidential.
- Learn about how soon a counselor can take your case.
- Request that the agency send you information about their organization and services. Any credit counseling agency in good standing should send you free information. If not, consider it a red flag and go elsewhere for help.
- Check with the attorney general’s office or a local consumer protection to see if consumers have filed complaints about the provider you are considering.
Credit Counseling – Using the Internet
- Check the Internet for information on credit counseling info and services.
- Look for Debt Counselors of America, a nonprofit online organization. Its website (americancredit.org) includes a wealth of information to help consumers improve their financial lives.
- Check the website of the National Foundation for Consumer Credit (nfcc.org).
Credit Counseling – Tips & Warnings
- Avoid scams by stay away from the advertising business of easy credit repair. While the ads released a promise of debt relief, they rarely say relief may be spelled bankruptcy.
- While bankruptcy is one way of dealing with financial problems, it is generally considered the option of last resort.
- Bankruptcy has a long-term negative impact on your creditworthiness. It remains in your credit report for 10 years and can hinder your ability to obtain credit, employment, insurance or a place to live.
