Expert Tips On Choosing A Credit Counseling Agency
With the debt levels at all time high, credit counseling
agencies are reaping on the boom. However, as a consumer, it is
in your best interest to choose a credit counseling agency
wisely. In generally accreditation is helpful and an
accreditation with either the National Foundation for Credit
Counseling or the Association of Independent Consumer Credit
Counseling Agencies is recommended.
When you have narrowed the list of credit counseling agencies
you want to work with, it is a good idea to call up your local
Better Business Bureau and see if any complaints are filed with
them. If a credit counseling agency has many complaints filed
against them, you are better advised to move on with other
companies.
It is also important to understand what is being offered by a
credit counseling agency. A reputed credit counseling agency
will offer you a range of services including a certified
personal counselor, personal financial budget calculation
worksheet, DMP (debt management plan) details, work with
creditors to lower interest and a lot of free resources and
credit counseling information.
If a credit counseling agency offers erasing your credit
history, it generally indicates a red flag. Credit history
cannot be erased. Accurate information about your credit
accounts will stay on record for 7 years.
Credit counselling fees: A reputed credit counseling firm will
offer budget services for free and charge you for DMP (debt
management plan) or other premium services you seek. As a
consumer look out for a reputed credit counseling agency that
will charge you between $15 - $30. $50 can be considered at the
high end of the spectrum when you are totally comfortable with
the services they offer.
Try to gather further information on credit counselors. Ask what
kind of training is given to credit counselors. Ideally look for
companies that offer training as well as accreditation by an
outside source. Additionally ask how the credit counselors are
paid? If they are paid a commission, they might pressure you
into accepting a DMP.
I hope all the above listed information will be helpful in
selecting the right credit counseling agency for you. Any
research before selecting a credit counseling agency will be
time well spent.