For example, if you are having trouble making payments on your debts, a credit counselor may be able to help you organize a debt management plan for all your debts, which typically lowers your monthly payments to creditors as well as lowers interest charges and fees. Under a debt management plan, you make a single payment to the credit counseling organization each month or pay period and the credit counseling organization makes monthly payments to each of your creditors.
Here are some questions to ask to help you find the best credit counseling service for you:
An organization that offers a range of services, including budget counseling and classes for managing spending and debt. Avoid organizations that push a debt management plan as your only option before they have spent a significant amount of time analyzing your financial situation.
Services may be offered in-person, by phone, or online. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.
Avoid organizations that charge for information.
Although most credit counseling organizations are non-profits, credit counselors may charge fees for some of their services.
Don't sign anything without reading it first. Make sure all verbal promises are also in writing. As with any contract, don’t sign anything that you don’t understand.
Is the organization or counselor accredited or certified? What are the qualifications of the organization’s credit counselors? Find out about what training or professional certifications the counselor has received.
Embarking on the journey of credit repair can be a transformative step towards financial freedom.
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