Choosing the Right Credit Counseling Agency for You - Some Tips


Credit counseling companies come in all shapes and sizes. Whether you are looking at working with a local credit counseling organization or a national credit counseling organization there are some very important factors to calculate before choosing the right credit counseling option for you. Here is a list of questions for you to ask a credit counseling company before determining whether or not you should participate with their organization.

Educational Services-

One of the most important aspects of a credit counseling organization is what types of money management services do they provide? Ask the credit counseling company if they have an education program in place. Ask the credit counseling organization if they offer this service free to any individual that is interested in getting assistance with their finances.It is very important that the credit counseling organization that you choose to work with offers this service at no cost. It is also very important to make sure that the credit counseling organization doesn't require your participation in their credit counseling services or otherwise known as a "Debt Management Plan" in order to receive their educational services at no cost.

Fees-

Credit counseling fees vary from one agency to another. Make sure to ask the credit counseling organization for a breakdown of their fees. Some credit counseling organization require large up front deposits or payments to enroll you on their plan. Credit counseling organizations are regulated by many states as far as what they can charge as a "start up" fee. Some credit counseling organizations require that the first payment that you send to your creditors actually goes to them. This is an unfair practice that some credit counseling organizations have abused in the past. For example, if your monthly payment is $500 to your creditors through the credit counseling organization they would keep the first $500 as their "Start Up" fee. This is unfair because the next consumer of the same credit counseling organization might only have a 100$ monthly fee. Therefore that person receives the same benefit as you from the credit counseling organization for $400 less than what you paid to start the plan. Ask the credit counseling organization if they follow the state regulated fee structure for your area. Credit counseling organizations should adhere to all state laws. It's best to ask this right away.

Customer Service-

Credit counseling is all about you and your financial situation. When it's your dollars at stake make sure to ask the credit counseling organization about what type of customer service they provide. Credit counseling organizations should have someone available for you to talk to during all business hours of the day. Be leery of a credit counseling organization that requires you to leave a message in order to speak to customer service. This can be a sign that the credit counseling organization is shorthanded and having difficulty keeping up with their clients needs.

Rick Munster is the Media Planner for Debt Reduction Services, http://www.debtreductionservices.com. He resides and works in Boise, ID.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Debt Consolidation Information:

Related Articles

Debt Consolidation - Free Information About Consolidating Debt
Millions of consumers across the globe are searching for a way out of debt. Credit card bills, loans, and other unsecured debts have left many people unable to meet their monthly expenses.
Credit Counseling - Six Tips to Avoid Counseling Scams
Credit counseling is a useful service for anyone with problem debt. A good counseling agency can provide advice regarding money management and debt consolidation.
Debt Consolidation: A Way Out?
When you are living paycheck to paycheck and it seems everyone is getting a piece of the pie except for you, debt consolidation may help you free up a little bit of cash each month. Debt consolidation is usually a great option if you are paying several minimum payments per month on high interest credit cards or loans.
4 Debt Reduction Tips
If you are overwhelmed by debt, there are options you can take that will help you pay off what you owe without the stigma of filing for bankruptcy. We'll examine four ways you can get your debt under control and start working back on the road to financial recovery.
Pay Off Debt Now: 5 Steps To Getting Your Finances in Order
In our world of dizzying change, nothing is more true than the time honored statement that circumstances always change.No where is this more true than with financial issues.
Burdened with Debt?
Too many debts? Having trouble paying your bills? Are you worried about losing your home or your car?You're not alone. Many people face a financial crisis some time in their lives.
Going Debt Consolidation Way!
We are aware of the fact that it is easy to get into debts, but on the contrary overcoming it is very complicated. Now give an end to your fear of lenders as more and more companies in the UK are offering solutions to tackle debts of individuals- both home owners and tenants.
Credit Counseling - Congress Offers No Details in New Law
The recently passed Bankruptcy Abuse and Consumer Protection Act was hailed as a breakthrough in bankruptcy law. Passed with bipartisan support in Congress and signed enthusiastically by President Bush, the law creates sweeping changes in debt law and will make it much more difficult for debtors to have their obligations swept away by the courts.
Does Working With a Credit Counseling Organization Hurt Your Credit Score?
Credit counseling organizations do not lower your credit score when you approach them for assistance in creating a budget that you can work with. Credit counseling is designed by nature to assist each individual in a way that is unique to a person's particular situation.
Debt Consolidation - Options for Reducing Your Debt
Studies show that Americans are now saving less than ever before. Along with that, Americans are carrying a heavier debt load than ever.
Best Debt Reduction Service
There was a time when incurring debts was looked down as one of the worst crimes ever. People were punished for not repaying within the stipulated time.
Student Loan Consolidation
Student loan consolidation is one of the most used methods for reducing and working off student debt. If you want to consolidate debt, whether it's a student loan debt or not, you have to follow a certain process.
What You Need to Know About Debt Consolidation
Debt consolidation is often a last resort for people who are in extreme debt and trying to avoid bankruptcy. Many people who are not in danger of bankruptcy, but have debt on high interest credit cards may also choose to consolidate their debt.
Shocking Facts - What Debt Settlement Companies Dont Tell You
If you're thinking about using a debt consolidation or debt settlement service to help you get out of debt faster and save money on your monthly payments, make sure you do your homework before choosing a company. There are definitely shams and scams out there.
Use Caution When Entering Into Debt-Consolidation Loan
To the person drowning in debt, a debt-consolidation loan looks a lot like a lifesaver. But agreeing to such a loan without understanding it completely could be a serious mistake.
Debt Consolidation - How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information.
Debt Consolidation Service In Birmingham
Jane was a fun loving girl from Birmingham, you could say she lived for today. She wanted all the latest fashions and gadgets and certianly was not afraid to use her credit card to pay for them.
Debt Elimination: Legal! Lawful! Ethical! Debt Elimination Really Works
You are trying hard to eliminate your loans but keep falling back on your old ways. This constantly leads you back to square one situation and debts seem like they are ever increasing.
Debt Consolidation Benefits
If you've ever been in a situation where you needed money that you didn't have, you probably already know about loans and credit cards. Here is a brief Explanation on What both are:LoansA loan is a type of financial aid which must be repaid, normally with interest.
Debt Consolidation: Why And How This Strategy Often Backfires!
Debt consolidation solutions, has found that as good as it sounds, debt consolidation loans rarely save you any money.In fact, they usually backfire and you wind up with an even greater debt load than before.