Consumer debt counseling offers personalized solutions for people who cannot manage their bills on their own. Counseling firms offer their services in a variety of ways so you can take advantage of them even if you are in a remote location or have a hectic schedule. You can receive counseling in person, over the telephone or online, according to the Federal Trade Commission (FTC).
Definition
Online debt counseling involves communicating with a counselor over the Internet. You and the counselor type the conversation rather than speaking to each other. An online session works the same as an in-person visit. You share personal and financial information with the counselor, who provides suggestions and options for handling your situation. The counselor may help you handle things on your own or suggest a structured debt management plan administered by the counseling firm.
Finding a Counselor
Online debt counselors often tout their nonprofit status, but the FTC warns that this does not automatically mean they are legitimate. Find out whether the firm charges for its online counseling sessions, and, if so, get a clear disclosure on how much it will charge before you initiate a session. Check the company's Better Business Bureau (BBB) rating, which shows its recent complaint records. Avoid counselors with bad BBB records or those that charge excessive fees for online services. The BBB advises choosing a counseling firm that belongs to the the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling.
Preparation
Prepare for your online debt counseling session by collecting your latest pay stubs, bill statements and bank account information. The counselor needs an accurate portrayal of your current financial situation to guide you toward the best possible solution. You can work smoothly through the counseling session if you have all your financial documents handy, rather than having to pause midsession to find them. Take steps to avoid interruptions during your online counseling so you do not accidentally type incorrect information, Brigitte Yuille of the Bankrate financial website advises.
Considerations
The best debt counseling firms offer a variety of information online rather than just chat sessions. The FTC advises looking for a counseling company that has educational materials for self-study on its website. This information should be free so you can browse it at your leisure with no obligation. Some debt counseling firms also have educational workshops, either in person or over the Internet.
Outcome
Online debt counseling cannot immediately solve your financial problems, but the counselor should give you some workable options. This might be as simple as creating a new budget with the counselor's help or as involved as entering a debt management plan, in which the counselor negotiates with your creditors, sets up a payment schedule and administers it through the counselor firm, the FTC explains.
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