How to Find Credit Counseling

Many people face financial crises at some time in their lives. Credit-counseling agencies work with individuals to help resolve financial difficulties.

Difficulty:

Moderate

Instructions

Things You'll Need

• Calculators
• Credit Reports
• Calendars
• Notebooks
• Personal Organizers
• Personal Financial Software

Local Agencies

1. Interview several agencies to choose a qualified credit-counseling service.

2. Ask each agency if it is a nonprofit organization, what services it offers and how much the services will cost you.

3. Find out if its counselors are certified and if the agency services are confidential.

4. Inquire as to how soon a counselor can take your case.

5. Request that the agency send you information about its organization and services. Any reputable credit-counseling agency should send you free information. If not, consider this a red flag and go elsewhere for help.

6. Check with the attorney general's office or a local consumer-protection agency to find out if consumers have filed complaints about the provider you are considering.

Using the Internet

1. Check the Internet for credit-counseling information and services.

2. Look up the Debt Counselors of America, a Web-based nonprofit organization. Its Web site (americancredit.org) includes a wealth of information to help consumers improve their financial lives.

3. Check the Web site of the National Foundation for Consumer Credit (nfcc.org).

Tips & Warnings

• Avoid scams by staying away from businesses advertising easy credit repair. While the ads pitch a promise of debt relief, they rarely say relief may be spelled b-a-n-k-r-u-p-t-c-y.

• Although bankruptcy is one of the ways to deal with financial problems, it's generally considered the option of last resort.

• Bankruptcy has a long-term negative impact on your creditworthiness. It stays on your credit report for 10 years and may hinder your ability to get credit, a job, insurance, or even a place to live.