Is There Consumer Credit Counseling for Senior Citizens?

Anyone who is having debt management problems, including senior citizens, can take advantage of credit counseling. Seniors are often on fixed incomes, which adds an additional challenge to their debt issues. Legitimate nonprofit credit counseling companies tailor their services to individual clients, including seniors, and offer various options based on the client's specific financial resources and obligations.

Definition

Consumer credit counseling means contacting a counseling firm to discuss your financial situation and get suggestions for managing your debt problems. The counselor's advice might include helping the client make a budget, referring the person to financial management seminars or even negotiating with the creditors to make and administer a multi-year debt management plan, according to the Federal Trade Commission. Counselors often get concessions from creditors, like suspension of late payment fees and lower interest, and their payment plans take a senior's income limitations into account. Most plans are geared to wipe out the debt completely in three to four years.

Delivery Methods

Credit counselors typically meet with clients in person, but many firms deliver services in a variety of ways, including Internet chat and telephone calls, the FTC advises. This variety makes credit counseling readily available to senior citizens who have health or mobility problems or other issues that keep them home-bound. Such people can discuss their issues over the phone or online rather than having to make the trip to an office.

Finding a Counselor

Seniors can find credit counselors through two professional organizations, the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling Agencies, according to the Better Business Bureau. Professional association membership, counselors trained by an outside agency and proper state licensing are all signs of a legitimate counseling company. Many firms tout their nonprofit status, but the BBB warns that this does not automatically mean they are reputable. Check their BBB rating and note the number of recent complaints and whether they were resolved satisfactorily. Ask about the cost up front because many counselors are affordable or provide free services, while some impose excessive fees.

Alternatives

Credit repair companies and debt settlement firms offer help to people with bill problems, but Sid Kirchheimer of AARP Bulletin advises senior citizens to use credit counselors instead because repair and settlement services are costly and often ineffective. Settlement companies negotiate for lower bill payoff amounts and charge a percentage of the money saved by the client. Credit repair companies dispute questionable negative data on credit reports. but they often challenge items without an appropriate reason, which causes them to be dismissed. Counseling is low-cost and effective compared to these other methods.