How to Choose a Credit Counselor

From time-to-time, consumers may find themselves in a personal credit crunch. Whether unexpected medical bills are squeezing your last pennies or a job loss has left you unable to meet your monthly debt payments, a credit counselor may be able to assist you. When making the decision to seek out the assistance of a credit counselor, it is important that you do your homework and verify that the credit counselor you choose will actually help you and not make your situation worse.

Instructions

1

Look in your Yellow Pages for a list of credit counselors in your area. Many credit counselors are associated with agencies but some also work independently. Write a list of all of the credit counselors that are within a comfortable driving distance from your house. On this list, write their name, phone number and address. Write one name per page so that you have room to take notes.

2

Call the first credit counselor on your list. Explain that you are searching for a credit counselor and that you would like to ask him several questions over the phone. Some credit counselors may ask that you come in for a meeting but it is best to prescreen over the phone as you dont want to waste your time with a face-to-face meeting if the credit counselor doesnt provide the services you are looking for.

3

Ask the credit counselor about their menu of services. Some popular options available to consumers who hire the services of a credit counselor are budget counseling and courses on debt management.

4

Find out of the credit counselor has free pamphlets available to consumers. These pamphlets may help you determine if credit counseling is right for you. If the credit counselor charges for even the most basic information, then you need to continue your search.

5

Determine what the fee structure is, you need to find this out on the phone as fees can vary greatly between counselors. Ask what the fees entail, determine whether you will be entering into a contractual agreement with the counselor and ask if they adjust fees on a sliding scale if you are in such a dire situation that you cannot afford to pay a fee.

6

Ask if the credit counselor is licensed and/or accredited and ask by which organizations. If your state licenses credit counselors, follow up with your stage agency to confirm the status of his license.

7

Thank the credit counselor for his time and let him know that you will be making a decision in the next few days and will call him back for an appointment if you decide that his services best meet your needs.

8

Contact your local Better Business Bureau to find out if there have been any complaints about the credit counselor.

9

Continue on to the next counselor in your list and ask the same questions.

10

Compare all of the information that you have obtained from the counselors you contacted. Once you have chosen a counselor, call the credit counselor back to make a face-to-face appointment.