How to Choose a Consumer Credit Counseling Agency

It's easy to get in over your head with credit being so easy to obtain these days. Offers of credit are ubiquitous until the moment you become even the slightest bit behind on your payments. If you just can't seem to make headway with your debts it may be time to find a credit counseling agency. Follow these steps to make sure you choose a good one.

Difficulty: Moderately Easy

Instructions

1. Search online or in the yellow pages for "Credit Counselors." Visit a few of the companies' sites. If you need help with house payments, too, check the HUD website for approved credit counselors.

2. Eliminate from your search any agencies that are for-profit organizations, not accredited by the Council of Accreditation or International Standards Organization, younger than 10 years old or that employ uncertified counselors.

3. Narrow your search further by finding out which companies still on your list have offices in your area. Then check for any complaints against them with the Better Business Bureau and your state's Attorney General.

4. Check out the remaining companies on your list with GuideStar. Very high salaries, evidence of nepotism and ownership by a person who also owns for-profit companies are big red flags.

5. Call the agencies that are left and ask specifically whether the do Debt Negotiation or Debt Management Plans. The Federal Trade Commission doesn't recommend Debt Negotiation because consumers are often charged high fees for plans that may never be approved by creditors.

Resources

• Department of Housing and Urban Development (HUD).
• GuideStar lets you check counseling agencies.

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.
• A Bad Credit Score is 598 or Below. Checking your own Credit Report won't affect your score! See instantly for $0 by Experian® www.FreeCreditReport.com