Since the economic crisis began, there has been a myriad of so-called “credit counselors” claiming that they can help you in relieving the pressure of debt. While there are some legitimate credit counseling agencies that can help you — most of which are non-profit organizations — there are others that are deceiving the public and have been under investigation by the FTC.
If you are choosing a credit counselor, you need to research several of them thoroughly. Select four or five and call each of these agencies. Ask questions about their services and the fees. Here are a few other things for you to consider:
Other Things to Consider When Choosing a Credit Counselor
Good, certified counselors have established a rapport with many creditors and know what they will and will not accept about payment arrangements. They usually have backgrounds in business and/or finance. They also know how to counsel people in such matters. As a legitimate practitioner of this service they must keep up credit counseling certification.
Credit counseling agencies use debt management plans to get you back on track. They negotiate with creditors to cut interest rates and may charge a monthly fee and/or a percentage of the debt owed. While debt management plans may be fine for some, they are not always suitable to your needs.
What to Expect from a Credit Counseling Service
There are counselors who will sit down with you, go over your budget, and make necessary changes. This is a better alternative if you are deeply in debt and need help in managing your money. After all, you can call the credit card companies and ask to have the interest lowered on your own.
By tweaking the personal budget in a way that is possible for you and your family, the financial counselor sets you on the right path to a debt-free life. However, as strict as the budget may become, using a counselor can only work if you are willing to commit to the changes. Once you are ready to change, give them a call and find out what they can do for you.
Click the link to learn more about choosing a credit counselor.