Consumer Credit Counseling: Help Is On The Way

2007-03-08 10:33:40

( Financial )



Dealing with debt can overwhelm even the most financially savvy people, and one is left looking for extra help and guidance. That help and guidance may be provided to you by a consumer credit counseling agency. But with so many of them these days, how do you spot the good ones? More important, what exactly are the benefits of working with consumer credit counseling agencies? Read on and find out.

Benefits

Consumer credit counseling stems from the noble idea of helping people in great debt to get back on track and regain their financial freedom. The right consumer credit counseling agency will take stock of your financial situation and offer you a variety of options that you can take. Your credit counselor will help you come up with a workable budget covering your living expenses plus monthly dues to your creditors. Aside from consumer debt counseling, a reputable agency will also provide you with consumer debt consolidation counseling if you need it, as well as a full array of services such as mortgage education and training on financial management. All counseling sessions are considered confidential. The right consumer credit counseling agency can be of great help to you in solving your financial problems.

Choosing A Credit Counseling Agency

Before settling in on one, you need to find as much about the agency as possible. Check with your state Attorney General and the Better Business Bureau in your area if there are any complaints filed against the agency. Ask whether they have the required licenses to operate. Find out if the consumer credit counseling agency you’re interested in is a member of a national organization and accredited by reputable and independent third parties. Ensure that their counselors are well-trained, certified and experienced in budgeting and financial management. Search the Internet for reviews and complaints about the agency.

What To Avoid

Don’t get carried away by big promises. Unscrupulous agencies promise to erase all your debt and build you good credit. It is better to be realistic in your expectations. Becoming debt-free takes time and can be a complex process and not something instant. Settle for a counseling agency that offers a comprehensive and customized plan to repay your debts on a workable time frame. Also, avoid agencies that ask for exorbitant upfront or maintenance fees. Don’t get pressured into making donations if you can’t afford them. Do not enroll in any program without fully understanding its terms and potential risks. Read all contracts carefully before signing them.

Examining The Agency’s Policies

Knowing how an agency conducts its business is vital. Make sure that all your funds reach your creditors at the soonest possible time. Look for hidden fees that they may be charging you. Demand that your counseling sessions be substantive. Ask for an assurance that all your payments are secure. Finally, verify if the agency has insurance or a bond that protects your funds from fraud or mismanagement.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.