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.
