Is Credit Counseling for Real?
September 20, 2009 by Jennifer Chait
Filed under credit
Credit counseling is an actual tool that people can use to help them get out of money binds, but there are some facts you should know about them.
No one can repair your credit for a fee: If someone says they can, or you read an ad that states, “Will fix all credit issues for a fee” or “Can raise credit scores right away for a fee” don’t buy it. By law, no one can screw with your credit rating or credit report or alter the information.
Credit counseling organizations should be your last resort: It’s not all that hard to work with creditors yourself to work out a repayment plan which is basically what credit counselors do. However, working it out yourself can save you some stress. Many credit counseling organizations are nonprofit but that doesn’t mean they’re always free. They may charge high fee, hidden fees, or pressure you to donate to the company.
Look for credit counselors who offer in-person counseling: Don’t deal with online or phone only counseling. You can find a more reputable credit counselor at your local university, credit union, many military bases, and at branches of the U.S. Cooperative Extension Service. Get referrals from trusted sources like friends and family or your bank.
Real credit counseling is more than fixing your credit this time: Reputable credit counseling organizations will not only help you to solve the debt crisis you’re in now, but they’ll also advise you on managing your money and debts for future success. They should help you create a budget and be certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors should talk with you about your entire financial situation help you create a workable and personalized plan that can cure your financial issues.
Choose an accredited counselor: Visit the National Foundation for Credit Counseling or The Association of Independent Consumer Credit Counseling Agencies to locate a credit counselor then check out that person with the Better Business Bureau.
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I can tell you that Consumer Credit Counseling – The non-profit one works. I enrolled 15 years ago when I got a divorce and it saved me and my sanity.
This was very helpful. I never knew there was so much to lok for with creit counselors.