Choosing A Counseling Service: How To Find What's Right For You

2007-03-08 10:33:40

( Financial )



A credit counseling service can provide valuable assistance to people needing help in fixing up their credit problems. However, not all credit counseling agencies are created equal, some are better than others, while many others are simply illegitimate. How do you make sure that the counseling service you are counting on to help you is not going to make your financial matters worse? The following are some things you can do to enable you to make a wise decision.

Investigate

This is a crucial step that you must take before picking a counseling service. Get in touch with your state Attorney General and ask about the agency you are interested in. Check to see if they have the required licenses to operate and whether they have been subject of consumer complaints in the past or if any complaints are currently filed against them. Research the internet for information and customer feedback about the agency. Also, inquire whether they are members of a national organization and if they are accredited by a reputable and independent third party. The more transparent the agency is about its operations and track record, the more likely that they’ll be good partners in solving your financial woes.

Scrutinize Their Policies

Find out exactly how they conduct their business. Ask the counseling service regarding their policies on fees and contributions. Also, inquire about the way they will handle your funds. Make sure that they remit 100% of your payments to your creditors as soon as they receive them. Also, ask for concrete proof that your funds are insured or bonded against fraud or mismanagement. Remember, you are depending on them to help you sort out your credit payments to your creditors, so only choose an agency if you have complete trust in them.

Find Out What Services Are Offered

To make the most out of debt counseling services, opt for an agency that offers a varied array of services and not just credit counseling. This way, you can avail of a comprehensive, customized and well-rounded plan for your situation. A full service counseling agency will provide you with help in forming a budget as well as mortgage counseling, a debt consolidation service, and training on financial management. Be sure to verify if their counselors are certified, trained and experienced in budgeting and finance, and that their counseling sessions are substantive and confidential. A good counseling service will also provide client assistance through phone, by mail, and online.

Avoid Big Promises

Debt counseling services that offer quick fixes and instant credit repair should not easily be trusted. When things sound too good to be true, then they probably are. Note that fixing debt problems is not instant; the process takes time and considerable effort. You are much better off with a counseling service that offers a realistic and workable plan to repairing your finances than those that make big promises without concrete plans to back them.


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