How to Choose a Credit Counseling Agency

When consumers realize that they do not make enough money to cover their monthly debt obligations, they may think that bankruptcy is their only option. Bankruptcy is a pretty serious step to make and consumers may be better served by seeking the assistance of a credit counseling agency. The benefits of credit counseling have become so apparent that it is now a required step for individuals to take if they are choosing to file for bankruptcy. If you are currently feeling the stress of paying your bills, consider consulting with a credit counseling agency to help alleviate the stress, relieve the burden of your debts and repay your obligations without filing for bankruptcy.

Instructions

1

Launch your internet browser and go to the National Foundation for Credit Counseling (NFCC) website.

2

Click on Take the First Step and then fill out your zip code and how far you would like to travel. Select whether you would like results for all agencies or only those who provide online counseling. It is suggested that you meet face-to-face with a credit counselor at an agency. Online-only should really be reserved for individuals without a credit counseling agency in their immediate area. Once you enter your information, click on the Go button.

3

Call the first agency on the list, or the one with the location that you prefer. Explain to the representative that you obtained their information from the NFCC website and that you would like to ask a few questions about their services. If they suggest a face-to-face meeting, explain that you are pre-screening agencies first and then after you make your selection you will then call back for a meeting.

4

Ask the agency what type of services that they offer. Do they only arrange for debt repayment at lower rates or do they also help with budgeting and debt management so that you do not end up in the same situation in the future? Write down all of the information you receive on a piece of paper with the agencys name and contact number listed so that you can refer back to it in the future.

5

Verify the fee schedule that the agency uses. Ask what the fees are used for and whether they have the possibility of going up or down in the future.

6

Find out if the agency is licensed or accredited and through which organizations. Follow-up with the organizations that they list to confirm that they are in good standing.

7

Inquire as to how their employees are compensated. You do not need to know what they are compensated, rather you want to know whether they are paid based on how many clients they sign up or what services they sell. If they do receive additional compensation based on sales, you may think twice about the organization as it is likely they do not have the consumers best interest in mind.

8

Thank the representative for his time and then follow up and contact others listed on your NFCC results page. Ask the other agencies the same questions and take comprehensive notes.

9

Compare and contrast all of the notes that you have taken and select an agency.

10

Call the credit counseling agency back and make an appointment for a face-to-face meeting.