What To Do and Not When Looking For A Credit Counseling Agency

Millions of Americans seek the help of credit counseling services in order to combat their overburdening debt situation. When the security of their financial situation is on the point of capsizing due to unpaid debt, a credit counselor can help manage this situation. Specially in the scenario where you cannot manage your own debt and do not know what to do, a credit counseling service can guide you in the right direction. In an ideal situation the legal and Gen. and nonprofit credit counseling service can do the following for you:

  • It can reduce the amount of money that you owe on the debt as much as 50% by never sheeting with your creditors.
  • A credit counselor can help you manage your debt simply by creating a budget for yourself. Nothing could be simpler and takes the least amount of time.
  • A credit counseling service can enter you into a debt management plan where it disperses payment on your behalf to all your creditors.

As many advantages as they might be to using a credit counseling service, you should keep a few important things in mind. We have discussed how to test a credit counseling service to make sure that it falls 100% true on being a nonprofit credit counseling service in the previous post. Here we will discuss some do’s and don’ts of finding a credit counseling agency to help you.

 

Do Not Get Taken in by Flashy Advertisements It won’t be uncommon for you to find several advertisements for credit counseling agencies in newspapers, television, radio and even in your e-mails. Do not get taken up by these and see advertisements that you see. Do not get enticed to take up our credit counseling agencies offer just because you have seen the advertisement but rather go to them when you need dictates it. Most of the estimate and reliable credit counseling services depend upon word-of-mouth and recommendations from the prior plans to get future clientele. Flashy and in-your-face advertisements are the tools of commercial enterprises who might not necessarily hold your best interest in mind, which brings us to the second point.

Make Sure That You Are the Priority When Peeling with a Credit Counseling Service Make sure that the credit counseling service has your best interest in mind. Many so-called nonprofit credit counseling services will do their best to a make a profit out of your financial strife by telling you that enrolling in a debt management plan is the only option. No one solution fits all circumstances. So recklessly and pulling people in debt management plans regardless of their personal situations is a trademark off a credit counseling agency that is working for you their own profit rather than to help you out.

Get the Details for Your Debt Management Program when enrolling yourself in a debt management plan get all the necessary details. Find out what is going to be the method of payment and when will the payment get disbursed to your creditors every month. You should get a written statement regarding all fees and charges. Credit counseling services are required by law to present you 100% transparent statement of all charges involved. They cannot slightly take away a percentage cut from the payment that you make for your creditors.

Do not be pressured into making a Decision Take your time to decide which credit counseling service to work with. When working with a credit counselor will not be pressurized into making a decision that involves joining a debt management plan etc.

Get the Time Estimate of When You Will Be Debt Free Get an estimate of the time that the credit counseling service aims to make you debt free by following the debt management plan. Mostly a debt management plan aims to get you free from debt in the next 2 to 5 years. If your credit counseling agency cannot manage to do this then they are probably wasting your time.

Make Sure the Credit Counseling Service Is Doing a Good Job of Negotiating with Your Creditors If you want your payments to be reduced, late payment charges to be waived, a credit counseling agency can do this for you. You might have to consider debt management programs and debt settlement. Make sure that the credit counseling agency is doing this for you.

Get Regular Statements of Payment Disbursement from the Credit Agency Make sure that your credit counseling service gives you a regular statements of the disbursement of payment that its making to your creditor.

Make Sure That the Credit Counseling Service Offers Continued Support Even when the credit counseling session is done or you haven’t told in a debt management plan, reputable credit counseling services will continue to offer you support toward long-term election ship by offering you credit education and assistance. Many reputable credit counseling agencies also offer free workshops and credit education classes.