If you feel that you no longer can manage your debts without help, or if you are considering bankruptcy, you might wish to seek credit counseling. Credit counseling services work with your creditors to lower your balances and interest rates while helping you learn more efficient debt management skills.
Facts
The U.S. government does not provide credit counseling for individuals. It does, however, provide consumers with a list of government-approved credit counseling agencies.
Features
Credit counseling through a government-approved credit counseling agency is required if you are planning to file for either Chapter 7 or Chapter 13 bankruptcy.
Time Frame
A credit counseling session with a government-approved credit counseling agency can take anywhere from 60 to 90 minutes.
Benefits
Credit counseling agencies that have been approved by the federal government are guaranteed to offer legitimate services. When you seek credit counseling through an agency that has not been approved by the government, you might be at risk of a scam.
Considerations
Although government-approved credit counseling agencies are nonprofit companies, you still will be charged a fee for their services. If you are suffering from an extreme financial hardship, however, you might be eligible to have this fee waived.
Location
You can locate government-approved credit counseling agencies in your area by visiting the website of the U.S. Trustee's office and viewing the list of approved agencies by state; see Resources for the website. You then can call to make an appointment for counseling or, if there is no credit counseling center close to your home, you can undergo counseling either over the phone or online.
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