Is A Consumer Credit Counselling Service A Friend Or Foe?

2007-03-08 10:33:40

( Financial )



Debt problems can drive even the most financially savvy individual to search for help and assistance; something that may be provided by a consumer credit counselling service. As a lot of them have been mushrooming lately, how do you know which ones are any good? Also, are the benefits for real or are you being misled to even more financial ruin? Read on and find out more.

What You Should Expect

Consumer credit counselling services are founded on the people’s need for assistance in dealing with great debt. Ideally, a consumer credit counselling service will assess your situation and come up with customized plans to repay your debt. A credit counselor will partner with you to create a feasible budget that includes allocation for your living expenses as well as small monthly payments to your creditors. Besides consumer debt counseling, a good agency will also offer you debt consolidation counseling if needed, on top of a full range of services including training on financial management. Consumer credit counselling services consider all sessions and financial records to be confidential. A good consumer credit counseling service can be a great partner to restore your finances to a better state.


How To Choose A Credit Counselling Service

Before you enter into any agreement with one, you need to find as much about the agency as you can. Contact your state Attorney General and the Better Business Bureau to find out if any complaints have been filed against the service. Ask if they have the required licenses to operate. Check if the agency you’re interested in is a member of a national organization and accredited by independent third parties. Make sure their counselors are well-trained and experienced in budget forming and money management. Go online and look for reviews and client feedback on the agency.


Exercising Caution

Pass up on big promises. Deceitful agencies will promise you heaven and earth just for you to sign up with them. Be realistic in your expectations. There are no shortcuts in getting off debt; all options require considerable time and effort. Settle for a counseling service that provides a wide-ranging and tailored plan to repay your debts on a practical time frame. Stay away from agencies that ask for exorbitant upfront or maintenance fees. Never get pressured into making donations that you can’t afford. Finally, do not sign any contracts without being fully enlightened with all of its terms and conditions.

Probing Their Policies

It is crucial to know how consumer credit counselling services conduct their business. Ensure that all your contributions reach creditors at the fastest possible time. Watch out for hidden fees that they may be charged against you. Demand for an assurance that all your payments are secure. Finally, verify if the agency is insured or has a bond that protects your money from mismanagement or fraud.


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