If you find yourself in debt or trouble managing your finances then selecting the right credit counselor is vital. Credit counselors can be a great help to you and your family but unfortunately some organizations may be more interested in their bottom line than your personal finances. Choosing the right one can change your financial future.
The benefits of Credit Counseling –
- Counselors can do a thorough analysis and offer solutions to your financial problems.
- Counselors can advise you on what caused the financial stress and how to manage your money in the future.
- Counselors can help develop a personal action plan to help pay off your current debt.
- Counselors are confidential and can negotiate with creditors and possibly reduce fees and interest rates on credit cards.
- Counselors can determine if your income covers your essential monthly expenses.
Look around carefully to choose the right agency to set you back on track. The National Foundation for Credit Counseling can help you find an ethical company.
Things to consider when choosing a credit counseling company.
- Is the agency accredited or affiliated with a national body?
- What range of services do they offer? Look for a company that offers a range of types of counseling, budget counseling and debt counseling.
- What are the fees associated with counseling? They should be reasonable and under $50 for basic services.
- Will the company work with your creditors? Some companies will only work with creditors who agree to make a payment to them.
- Will the full amount of your payment go to the creditors? The full amount should go toward the repayment of your debts with no portion going to the agency’s pocket.