How to Counsel Debt With a Credit Council

With credit card debt at an all time high and the economy in a tough spot, many consumers turn to debt counseling services in order to get their finances in order. Consumers should be aware of the best steps to proceed in order to achieve the best results from credit counseling.

Instructions

Choosing a Debt Counseling Agency and Getting Started

1

Select a reputable debt counseling service. Find out whether the counseling agency belongs to any professional groups such as the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA). These agencies are instrumental in aiding consumers to find dependable debt counseling services. Also, check the Better Business Bureau to find out whether they have any complaints on the agency. If complaints exist, see how many were resolved to the customers' satisfaction. The Better Business Bureau is an excellent tool to aid consumers.

2

Interview each agency. Find out the up-front costs, such as a monthly fee, that will apply to use the service. Also, request the qualifications of the debt counselors associated with the service. This will help you figure out the best agency to use.

3

Gather your most recent statements and provide them to the debt counseling agency you choose. The agency will then provide a detailed analysis of how long it will take to pay off and the estimated interest rate the agency can get from your creditors.

4

Determine whether working with the agency is an effective option for you. Using the statements you sent to the debt counselor, determine how long it will potentially take you to pay the debt off at the rate that you are paying it. Then, determine whether the lower interest rate and any applicable fees the debt counseling agency charges will be worthwhile in the long run.

5

Review the debt counselor's assessment. Read the proposal that the debt counselor provides and ask them questions so you can be clear on all terms prior to beginning the program.

6

Sign and return the debt counseling agreement along with any other items that your counselor may request.