How To Choose The Right National Consumer Credit Counseling Agencies

2007-03-08 10:33:40

( Financial )



As people try to find solutions to their debt woes they sometimes turn to national consumer credit counseling agencies. Although a relatively good idea, there are a few things that should be kept in mind when looking for national consumer credit agencies to work with. Remember that not all counseling agencies exist for the benefit of consumers and that a lot are simply after your money. Here are some pointers to consider in choosing a counseling agency.

Investigate

To be able to make an informed decision, you need to know as much about the agency you’re interested in. Conduct a background check on the agency. Ask your state Attorney General if the national consumer credit counseling agency has the licenses needed to operate. Also, consider their disciplinary record and reputation.

Check Their Fee Structure

Despite the usual claims that they are nonprofit, it does not imply that their services are free. Still, a reputable agency will extend its services at low costs to you because it’s your creditors that make voluntary contributions to the agency. Avoid those that ask for exorbitant upfront fees and maintenance fees. They will only milk your coffers dry. Check their fee structure, whether they would ask for donations from you or whether they would deduct anything from your monthly payments to your creditors. Ensure that all your contributions will directly reach your creditors at the fastest possible time. Make sure to be clear about the payment terms before signing up

Ask What Services they offer

First-rate national consumer credit counseling agencies offer a variety of services that are customized to your particular situation. Expect them to provide counseling sessions on budget-forming, advice on mortgage loans and refinancing, debt consolidation counseling, and money management training. Make sure that their counselors have the proper training and certification as well as experience in handling your particular case.


Avoid Big Promises

Big promises such as instant credit repair and other quick fix debt solutions are often made to lure you to sign up on their debt management programs. If the terms seem too good to be true, then they probably are. Do not give in to these big promises. Be realistic in your expectations; the debt problems you have now are a result of years of neglect and poor choices, they won’t disappear in an instant! Opt for an agency that offers workable and doable plans and sound strategies to pay off your debt.

The right national consumer credit counseling service can provide invaluable help and guidance in your pursuit of a debt free life. Take time in investigating and comparing agencies before signing on that dotted line. The more informed you are, the less likely that you’ll be a victim of fraud.


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