Does your heart skip when the phone rings? Are you afraid toopen the mail and get another letter from a debt collector? Ifso, you are not alone. Many Americans are in debt up to theireyebrows and most don't even know what options are available tohelp them. They just struggle paycheck to paycheck, make minimumpayments and watch with frustration as the interest rates eatall the payment and the debt seems to just grow.
Credit Counseling is one option to help deal with debt problems,but before jumping the gun and signing up with any creditcounseling firm do your home work.
Many credit counseling organizations are both legitimateand nonprofit. They work with you to solve your debt problems.However, there are also those who may say "nonprofit" and chargefees. And those that are completely illegitimate. Some creditcounseling organizations charge high fees, others hide theirfees and the third group may ask for "voluntary" contributions.All of these will eat into the payments you need to make to yourdebt.
Choosing a Credit Counseling Organization
Find out if they are willing to send you free information aboutthemselves. You are looking for firms who are willing and openabout themselves and their policies. If they hassle you for anappointment or want too many details from you before they sendyou anything, go elsewhere.
What you want to get from a Credit Counseling Organization, tostart with, covers the following:
1- Are they licensed to offer you services in your state?
2- What are their set-up fees?
3- What are their monthly fees?
4- Are there any other fees or contributions required?
5- What are the qualifications of their counselors?
6- Are their counselors accredited and/or certified by anoutside organization? If so, by whom? If not, how are theytrained? Third party certification adds an independentunofficial auditing that is helpful.
7- How do their counselors get compensated? You want to avoidanything that resembles commission.
8- What assurance do you get that your private informationremains confidential and secure?
9- What services do they offer?
Debt management is just a part of the debt issue and youmay need other services to help you accomplish what you need.Look for a wide range of services without bias. If anorganization says they have a wide range and then push aparticular service such as debt management plan (DMP), then theyare biased. How can they help you with both the immediate debtproblem as well as long term plan to help you stay on track?Will you have a formal written agreement or contract with them?You need everything in writing and you need time to review thembefore you sign. Consider verbal promises invalid.
Once you get the information in the mail you need to confirmthat the credit counseling organization is both legitimate andreputable. You can check their legitimacy by contacting yourstate Attorney General, local consumer protection agency, andBetter Business Bureau. See if there are licensed and if thereare any complaints against them filed by consumers. Rememberthat a clean record is just a start and does not guaranteeservice.
Checking their reputation is harder since they deal withconfidential information and you cannot ask them for referrals.I understand that asking friends and family could be a littleawkward but getting recommendation from someone who actually hasdealt with an organization is one of the best ways to screen afirm.
Many reputable credit counseling organizations offer freeeducational materials and workshops. They are in the business ofhelping you get to the root of your budgeting issues. Takeadvantage of their workshops that will also give you anopportunity to check them out in person.
Your financial institution and your local consumer protectionagency could also be good sources of information.
I like what William F. Halsey said about problems. "All problemsbecome smaller if you don't dodge them, but confront them."
May your problems become smaller
Credit Counseling is one option to help deal with debt problems,but before jumping the gun and signing up with any creditcounseling firm do your home work.
Many credit counseling organizations are both legitimateand nonprofit. They work with you to solve your debt problems.However, there are also those who may say "nonprofit" and chargefees. And those that are completely illegitimate. Some creditcounseling organizations charge high fees, others hide theirfees and the third group may ask for "voluntary" contributions.All of these will eat into the payments you need to make to yourdebt.
Choosing a Credit Counseling Organization
Find out if they are willing to send you free information aboutthemselves. You are looking for firms who are willing and openabout themselves and their policies. If they hassle you for anappointment or want too many details from you before they sendyou anything, go elsewhere.
What you want to get from a Credit Counseling Organization, tostart with, covers the following:
1- Are they licensed to offer you services in your state?
2- What are their set-up fees?
3- What are their monthly fees?
4- Are there any other fees or contributions required?
5- What are the qualifications of their counselors?
6- Are their counselors accredited and/or certified by anoutside organization? If so, by whom? If not, how are theytrained? Third party certification adds an independentunofficial auditing that is helpful.
7- How do their counselors get compensated? You want to avoidanything that resembles commission.
8- What assurance do you get that your private informationremains confidential and secure?
9- What services do they offer?
Debt management is just a part of the debt issue and youmay need other services to help you accomplish what you need.Look for a wide range of services without bias. If anorganization says they have a wide range and then push aparticular service such as debt management plan (DMP), then theyare biased. How can they help you with both the immediate debtproblem as well as long term plan to help you stay on track?Will you have a formal written agreement or contract with them?You need everything in writing and you need time to review thembefore you sign. Consider verbal promises invalid.
Once you get the information in the mail you need to confirmthat the credit counseling organization is both legitimate andreputable. You can check their legitimacy by contacting yourstate Attorney General, local consumer protection agency, andBetter Business Bureau. See if there are licensed and if thereare any complaints against them filed by consumers. Rememberthat a clean record is just a start and does not guaranteeservice.
Checking their reputation is harder since they deal withconfidential information and you cannot ask them for referrals.I understand that asking friends and family could be a littleawkward but getting recommendation from someone who actually hasdealt with an organization is one of the best ways to screen afirm.
Many reputable credit counseling organizations offer freeeducational materials and workshops. They are in the business ofhelping you get to the root of your budgeting issues. Takeadvantage of their workshops that will also give you anopportunity to check them out in person.
Your financial institution and your local consumer protectionagency could also be good sources of information.
I like what William F. Halsey said about problems. "All problemsbecome smaller if you don't dodge them, but confront them."
May your problems become smaller