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If you are living paycheck to paycheck, worried about debt collectors, or can't seem to develop a workable budget, you may be considering a consumer credit counseling service. Your creditors may be willing to accept reduced payments if you enter a debt repayment plan with a reputable credit counseling service. Choosing whether or not to use one of these services and choosing which agency to work with can be difficult, so here are some tips on how to approach this decision.
If you want to work with a credit counseling agency, interview several. Here are some good questions to ask:
- What services do you offer?
- Do you have educational materials? If so, will you send them to me? Are they free?
- Can I access them on the internet?
- In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future?
- What are your fees? Do I have to pay anything before you can help me? Are there monthly fees? What's the basis for the fees?
- What is the source of your funding?
- Will I have a formal written agreement or contract with you?
- How soon can you take my case?
- Who regulates, oversees and/or licenses your agency? Is your agency audited?
- Will I work with one counselor or several?
- What are the qualifications of your counselors? Are they accredited or certified? If not, how are they trained?
- What assurance do I have that information about me (including my address and phone number) will be kept confidential?
- How much do I have to owe to use your services?
- How do you determine the amount of my payment? What happens if this is more than I can afford?
- How does your debt repayment plan work? How will I know my creditors have received payments? Is client money put in a separate account from operating funds? How often can I get status reports on my accounts? Can I get access to my accounts online or by phone?
- Can you get my creditors to lower or eliminate interest and finance charges or waive late fees?
- Is a debt repayment plan my only option?
- What if I can't maintain the agreed-upon plan?
- What debts will be excluded from the debt repayment plan?
- Will you help me plan for payment of these debts?
- Who will help me if I have problems with my accounts or creditors?
- How secure is the information I provide to you?
You might wish to check with your state Attorney General, local consumer protection agency, and the Better Business Bureau to find out if consumers have filed complaints about the provider you are considering. Any reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If not, consider that a red flag and go elsewhere for help.
Be careful before choosing Consumer Credit Counseling. Research this option using the internet and verify everything. CCC companies have gotten a very bad name in recent years based on changes in their industry. Credit counseling was originally started by the credit card companies themselves as an alternative means for collecting their debt from consumers. These companies typically never reduce the amount owed to their participants, sometimes renegotiating late fees and over-the-limit charges. This is the "savings" that they advertise. According to NationalDebtRelief, "the success rate of debt management plans is about 20% to 26%." They also go on to recommend considering debt consolidation loans and Chapter 7 bankruptcies, citing their "better completion rates."
It is also important to note that when filing for bankruptcy, whether Chapter 7 or Chapter 13, that you are required to provide a certificate showing that you received credit counseling from an agency approved by the U.S. Trustee's office within the 180-day period before you file for bankruptcy.
Kevin Stringer
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What are some reputable credit counseling companies?
There are many reputable credit counseling companies. Some of the most reputable ones include '123 Credit Counselors, Inc', 'Abacus Credit Counseling' and 'Advantage Credit Counseling Service, Inc'.
Where can a person get advice on credit counseling?
There are a number of sites one can visit to get advice on credit counseling. One can find such advice at the 'National Foundation for Credit Counseling' or 'Better Business Bureau' who have a good advice on choosing a credit counseling agent.
Where can one find online a credit counseling program?
One can find a credit counseling program online by searching credit counseling program. There are many programs out there, each offering different solutions.
What is the purpose of credit counseling?
The purpose of credit counseling is to let a person know ways to reduce their debt. They also counsel people in ways to stay out of debt. A person might need credit counseling if they are about to file for bankruptcy.
What type of services does the National Foundation for Credit Counseling provide to their clients?
The National Foundation for Credit Counseling provides credit counseling, housing counseling, bankruptcy counseling and education, and financial education to their clients. They also have tools available to help consumers learn to budget, tips on how to save and resources to teach kids how to save.
What are some reputable credit counseling companies?
There are many reputable credit counseling companies. Some of the most reputable ones include '123 Credit Counselors, Inc', 'Abacus Credit Counseling' and 'Advantage Credit Counseling Service, Inc'.
Where can a person get advice on credit counseling?
There are a number of sites one can visit to get advice on credit counseling. One can find such advice at the 'National Foundation for Credit Counseling' or 'Better Business Bureau' who have a good advice on choosing a credit counseling agent.
Who has the best online credit counseling?
There are quite a few large Credit Counseling Companies online. There are several websites with reviews and testimonials about the major Credit Counseling Companies.
Do you have to get credit counseling before you can file for bankruptcy?
You do not have to necessarily get credit counseling before you can file for bankruptcy.
What kind of company is Careone Credit Counseling?
Careone Credit Counseling is a debt relief company that helps consumers get out of debt with the help of a trained credit counselor. They also provide credit counseling for those in need.
When was National Foundation for Credit Counseling created?
National Foundation for Credit Counseling was created in 1951-01.
What is a credit counseling agency?
A credit counseling agency is a business, or partnership which gives advice on either boosting your credit scores, and expunging credit blemishes from your record.
Where can someone get consolidation credit counseling?
You can get consolidation credit counseling online at the ConsolidatedCredit Organization website. Alternatively, you can also get this type of counseling from websites such as ConsumerCredit.
Where can one find online a credit counseling program?
One can find a credit counseling program online by searching credit counseling program. There are many programs out there, each offering different solutions.
Should I seek out the services of credit counseling to handle my bankruptcy?
Credit counseling can be useful to use before declaring bankruptcy. They can help you manage your debt, develop a realistic budget, and formulate a plan to negotiate payments.
Where can I get free credit counseling in Detroit, MI?
Christian Credit Counseling offers free counseling that may help you. In Detroit, they can be reached at (248) 557-7341.
What services are provided by Consolidated Credit Counseling Services Inc?
The CCCS of Greater Dallas offers a wide variety of help and counseling for financiers in rough situations, such as bankruptcy and debt holes. The services offered includes financial counseling, bankruptcy services, credit report reviews, debt management plans, housing counseling, and more.
