How to Choose a Credit Counselor
Are you knee-deep in debt? Can’t seem to save enough for retirement? And are you always worried about your monthly budget? If this sounds familiar, you definitely need help. Living on paycheck to paycheck can be a frustrating experience. It is important to seek the services of a credit counselor to get you back on track.
There are many credit counseling organizations that are specifically created to help people like you. However, you need to take note that even if a certain organization classify themselves as “non-profit”, it is no guarantee that you won’t be charged for the services nor does it guarantee that you’re actually getting a legitimate service. Credit counseling can be though phone, internet, or through local offices. If possible, it is advised to get credit counseling in person. A lot of universities, credit unions, military bases, and branches of the US Cooperation Extension Service provide non-profit services.
Choosing a Counselor
A reputable counselor will advise you on how to manage your money. He will also help you come up with a budget that is specifically suitable for your needs. Free educational courses and workshops are usually available as well. The counselors need to be trained in money & debt management, consumer credit, and budgeting.
Remember that a good counselor will go over your entire situation before providing recommended. The initial consultation will last for an hour. Afterwards, if you are satisfied with the service, you can make a follow-up appointment. Also, reputable agencies will offer free information about the company and its services without requiring you to disclose any information about yourself. If they don’t do that, you should go elsewhere for help.
After you develop a list of counseling agencies, check with the local consumer protection organization, the Attorney General, and the Better Business Bureau. These organizations can tell you if there have been any previous complaints on the credit counseling agency. However, take note that even if there is no complaint, it is still no guarantee that they are can provide good service. Look into the US Trustee Program because they have a list of agencies approved to provide pre-bankruptcy advice.
Lastly, you need to ask questions in order to get the best credit counselor. Among the things you should clarify include the services offered, the fee structure, their license, the qualifications of the counselors, and whether or not the organization needs a written contract. Don’t sign anything without fully understanding the conditions.
