- Rhode Island credit counselors affiliated with national trade organizations can help you plan a strategy to reduce your debt.Debt concept - cutting a credit card image by Sophia Winters from Fotolia.com
With hundreds of companies offering consumers quick and painless solutions to their debt, finding a reputable debt resolution service can be tricky. For-profit debt resolution companies are notorious for preying on distressed consumers who will do anything to find relief from their creditors, often luring customers with promises that the debt can be reduced or erased in a matter of months, with low monthly payments and without the need to declare bankruptcy. Because such offers are generally too good to be true, consumers looking to lower their debt load should carefully vet debt resolution services before signing any agreements. A good place to start is by contacting a counselor affiliated with one of the credit-counseling industry's three trade organizations, which require their members to adhere to strict standards of professional conduct. Dozens of agencies in Rhode Island have achieved such recognition. - Agencies affiliated with the National Foundation for Credit Counseling are non-profits that require members to maintain accreditation through an independent, non-profit organization called the Council on Accreditation for Children and Family Services (COA). The accreditation ensures that the agency has met strict financial, organizational and ethical standards. Counselors working with NFCC-accredited agencies are required to obtain appropriate certification and their debt-management programs must include a detailed review of current and prospective income, as well as present and anticipated financial obligations. Services from these agencies will often be available for free or at a low cost. Clients can arrange counseling services with NFCC members from anywhere in the country through the organization's Web site, at nfcc.org. The state's only local agency listed in the NFCC database is CCCS Credit Advisors, in Warwick, a branch of Money Management International (www.moneymanagement.org.)
- Like the NFCC, the AICCCA represents non-profit agencies that must adhere to strict professional and ethical standards to maintain their membership. Member agencies are required to maintain records of their counselors' training and qualifications, document that they are charging reasonable fees for their services and submit to an annual audit, among other quality controls. They also must obtain accreditation from the COA or another similar agency called the Bureau Veritas Group. There are 10 member agencies serving Rhode Island as of 2010, although only one of them is located in the state. That agency, CCCS Credit Advisors, is also affiliated with the National Foundation for Credit Counseling Members. A list of other agencies serving the state is available at the association's website at aicca.org.
- The American Association of Debt Management Organizations is the credit-counseling and debt-management industry's largest trade organization, according to its Web site. It provides consumers with general education about finding debt resolution services, but refers consumers in Rhode Island to a general listing of counseling agencies licensed by the state. While the AADMO does not provide any endorsement or information about these agencies, it can be a useful first stop to check if the agency you are considering is licensed in the state. Information can be found at the AADMO's Web site at www.aadmo.org.
- As with any debt resolution service provider, the National Foundation for Credit Counseling recommends considering contacting each of your creditors individually before working with a debt resolution service. If you do use a debt-settlement company, check the company's record with the state's Better Business Bureau and the Attorney General's Office and make sure the debt-settlement account the company plans to set up for you is FDIC-insured.
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