How to Get Credit Counseling

If you overspend on your credit cards, credit counseling is one way to fix your finances. Many agencies offer credit counseling and debt consolidation services, though there are major differences in how the companies do business. With a bit of know-how, it's easy to separate legitimate credit counseling companies from the others.

Instructions

Difficulty: Moderate

1. Research the available credit counseling services. You are looking for a company that belongs to reputable industry bodies. Check that the agency you choose is allowed to do business in your region. Ask about the training that counselors get.
2. Find out about the cost of credit counseling. You will have to pay for counseling sessions, but hefty up front fees or per creditor fees are warning signs.
3. Write down the details of your debts. You will need this information if a debt consolidation plan is recommended.
4. Talk to a credit counselor about your problems with credit cards, debt consolidation requirements and other issues of concern. Ensure that the counselor fully understands your financial situation.
5. Decide what your options are for reducing your debt. You will have to cut up your credit cards. The credit counselor will assist with getting fees waived and interest rates reduced.
6. Check with your creditors to make sure that payments are made on time. This will keep your financial plan on track.
7. Sit back and enjoy the financial freedom that you have gained from credit counseling.

Tips & Warnings

• The Better Business Bureau is a great resource for checking the legitimacy of credit counseling agencies.