This month I have been discussing credit counseling services. In Do you Need Credit Counseling?, I gave some possible benefits to credit counseling services. Then in Credit Repair Scams, I gave some possible pitfalls of credit counselors. Today I wanted to offer some help on how to find a good credit counseling agency if you have decided to take the leap for help.
Unfortunately, the credit counseling industry is full of scams and poorly run companies. The rules that govern them can vary greatly from state to state, plus they are confusing and disorganized. Relying on the law to help you navigate the world of credit counseling is not the best avenue. Be due diligent and really do the research yourself.
Start first by comparing a variety of services. Make a list of the ones you have heard of, read about, or got referrals on. Try to find at least five choices to research. That way you are most likely to find the best one for you.
Once you have your list, check it against the National Foundation for Credit Counseling (NFCC) and Association of Independent Consumer Credit Counseling Agencies (AICCA) records. Ideally, a good agency is most likely affiliated with one of these organizations.
Then you want to research their complaint record. Some good places to check are the Better Business Bureau, the consumer protection division of your state, and the Federal Trade Commission. If there are no complaints, that is an excellent sign. However, even if all your choices have a couple of complaints… this industry tends to attract problems, so don’t let that completely discourage you. The key is to look for a low number of only minor complaints.
Once you have narrowed your selection down to one or two, make sure to meet them in person. Don’t send money to someone through the Internet or only after a phone call. In this meeting, really evaluate the services they provide and fees they charge – before you give them any financial information. You want an agency that will provide counseling as well as help you pay off your debt.
Also check out my article on: Non-profit Financial Companies