Counseling Services for No-Credit Debt Consolidation

Choose your counseling service wisely

Working with a quality credit counseling and debt consolidation firm is one of the best ways deal with serious credit card debt problems.

Things You'll Need

• Credit card statements
• Debt information
• Spreadsheet program

Instructions

1. Gather all your bills and your credit card statements. Find the total outstanding balance and interest rate for each of your debts.

2. Record each debt on a spreadsheet. Be sure to include the total amount of the debt and the interest rate. Rank your debts according to how much you owe and the interest rate. You will get more bang for the buck by first paying off the debts with the highest interest rate.

3. Choose a counseling service after checking with the Better Business Bureau. Avoid companies with a large number of consumer complaints; deal only with companies that are members in good standing of the BBB.

4. Watch out for companies that charge an up-front fee for their services. Also watch out for language in the contract that allows the agency to confiscate part or all of your monthly payment for fees and charges.

5. Look for a contract that is straightforward and easy to understand. The more complicated the contract is, the easier it is for the counseling service to hide fees and charges.

6. Look for a company that offers consumer education in addition to help with your debts. It's not enough to simply get out of debt--a good consumer counseling service will help you stay debt free for the long haul.

References

• Money Magazine: Credit Counseling