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
• Calculators
• Notebooks

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).

Local Agencies

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

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

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

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

8. 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.

9. 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.

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.

Who Can Help Sponsored

• How strong is your score?  Did you know checking your own credit won’t affect your score? Click here to see yours in two easy steps from Experian.

on 11/22/2005 Metro United Way offers credit counseling. They can combine your bills, get lower interest rates, and provide you with a budget to live by. You can contact your local United Way branch to find help. This is a free service. It is a lot of help.

on 11/22/2005 Credit counselor organizations charge a fee. It's a small price to pay if you don't know how to deal with creditors or if you don't have the skills to devise a plan and stick to it. In the long run, a credit counselor can bring stability into your life.