Legitimate credit counseling companies help you if you get buried in bills. Many have useful information on their websites to access at any time, according to the Federal Trade Commission (FTC) website, and some provide budgeting and debt-management courses at little or no cost. You may need more personal service in the form of counseling, but it is difficult to afford when you are already in financial distress. Fortunately, some counseling is free.
Definition
Credit and debt counseling means getting assistance from a trained counselor on handling current financial problems and avoiding them in the future. The counselor meets you in an office or you chat on the phone or Internet, according to the FTC. The session focuses on your debt and how best to handle it, which might mean making a budget, negotiating with creditors or entering into a structured payment plan.
Voluntary Counseling
You are free to seek credit counseling whenever you feel you need it, whether you are just starting to have problems paying your bills or are seriously delinquent. Early counseling may enable you to get back on track with something as simple as budget adjustments. You may require a formal debt-management plan administered by the counseling company if your bills are seriously delinquent. Counselors generally charge fees for certain services, but the FTC advises that legitimate firms do not turn away clients who cannot afford to pay. Ask the firm about its payment policies for destitute people before agreeing to work with it.
Bankruptcy Counseling
The court requires you to complete credit counseling before you are allowed to file bankruptcy, according to the FTC site, and additional debt-management counseling before your case concludes. The typical cost is $50 for pre-bankruptcy counseling and $50 to $100 for the final session, but the FTC advises that all fees are waived if you are unable to pay. Approved bankruptcy counselors are listed on the U. S. Department of Justice's U. S. Trustee Program website (see Resources).
Warning
Many credit counseling firms tout their non-profit status, but the FTC site warns that being a non-profit does not make them legitimate or mean they work for free. Screen firms carefully by asking about costs, services offered and whether they have a state license, if required, and if their counselors were trained and certified by a professional organization, the Better Business Bureau advises. Avoid firms that insist on high fees, that are not licensed or that have unqualified employees. The National Foundation for Credit Counseling, a professional organization, provides referrals to free and low-cost counselors (see Resources).
0 comments:
Post a Comment