Debt Advice
There are advisory services to help those who need to budget and pay bills. Among the institutions that provide credit counseling, free or low cost, credit unions are federally guaranteed (in English), the Cooperative Extension office (in English), service centers for families of military personnel (in English) and religious organizations.
Local agencies nonprofit offering educational programs on money management and help in developing debt payment plans operate under the name Consumer Counseling Service Credit Matters are members of the National Foundation Advisory Credit (in English). Call 1-800-682-9832 for help in Spanish.
Usually, a company that provides counseling service will negotiate lower payments with your creditors and then make payments using money you send monthly. The cost of establishing the debt management plan are not borne by you, but by the creditor. To find the best company for advice if necessary, ask the following questions:
What services do you offer? Look for an organization that offers advice on budgeting and money management classes and a debt management plan.
They provide free information? Do not use the services of organizations that charge for providing information or who first asked many details about your problem.
What are your fees? Are fees set and / or monthly? Generally, an average fee is $ 10. If you pay much more than that, you may be setting a trap.
How will the plan of debt management? What debts can be included in the plan? I receive regular reports on my accounts?
Ask if the counselor can get creditors to lower or eliminate interest and debt charges. If you answer yes, check with your creditors.
Ask what would happen if you could not make the payments. If an organization replied that will not help because you can not pay them, seek help elsewhere.
Have your advisor to help avoid future problems? Get a plan to avoid the accumulation of debt in the future is as important as solving the immediate debt problem.
Request a contract. All verbal promises should be in writing before you make any payments.
Are their counselors accredited or certified? The credit counseling agencies are legitimate affiliate to the National Foundation for Credit Counseling Agencies or the Association of Independent Consumer Credit Counseling.
- Unfortunately, the credit counseling companies honored with many rivals who are more interested in taking your money than help. They can do more harm than good. The risk indicators are:
- High fees in advance. A credit counseling agency with good reputation will send you free information about itself and the services it provides without asking any details about your situation.
- Unrealistic promises. Some companies falsely claim they can solve problems with little or eliminate existing negative information in your credit report.
- See records of complaints from the consumer protection office of your state or locality and the Better Business Bureau to see if complaints have been filed against the company in question.
