Do a small research while selecting the right credit counseling service

Written by admin on December 5th, 2010

When your financial position is down, you need a credit counselor to guide you to the correct path.  What should you do to find out a suitable counselor?

With the financial tensions mounting, you feel embarrassed to go to a counselor.  But it is very important that you should find right counselor before your financial situation worsens further. He can help you to consolidate your debt and stop your creditors approaching you so that you get enough time to set your financial house in order once again.

Consider the following tips while searching for a right counselor for you:

Get a reference – It is always good to take opinion of someone who has already approached a credit counselor.  Most of the counseling companies with good reputation will publish the list of their clients.  You can contact any such company to get details of some of their customers.  Their opinion will always be valuable for you. Reputation factor – American Association of Debt Management Organizations provides accreditation to credit counseling companies.  Companies registered there will be following good standards of practice and will be focusing on your issues with the professional touch. Is your counselor registered with them? Registration with Better Business Bureau – This bureau can provide you names of credit counseling companies which are good to deal with.  When you visit the website of any credit counseling company, find out whether it is a member of Better Business Bureau and it has obtained the reliability program seal. Profit motive – A number of states require such counseling companies to be nonprofit organizations.  They generally get support from the credit card companies towards their operating expenses.  They are not required to pay any taxes also.  So if the company you are thinking to approach is a nonprofit organization, their advice may be independent. Enrollment fees – Many card companies and lenders have reduced their funding for credit counseling services.  Naturally many counselors have started asking for a huge fee upfront.  You should not consider approaching them.  There are many companies in the market, which offer waiver of enrolment fees.  You are already burdened with your debt and are not prepared to get such expensive advice. Educational assistance – A counselor should be resourceful to offer you CDs or videos containing the information on how to overcome financial problems.  Such education will prove useful in the long run. Providing well documented plan – You should be able to get a documented plan for becoming debt free.  It will set up some realistic goals.  This gives you confidence in overcoming your difficulties.

If you make a small online research, you will be able to select a good counselor.  That will be your first step to come out of the debt trap.

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