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Consumers, who find themselves in financial trouble with debts far beyond their ability to handle with their present cash flow, need to find debt consolidation credit counseling help. Professional credit counselors will aid financially strapped consumers with personalized plans to whittle away at debt providing advice about everyday money management techniques. When seeking a productive counseling service, you need to avoid the many scams that exist which will only take your money. Here are some tips:
1. Ask Others What Works
Before choosing a debt consolidation counselor or company advertising these services it is a good idea to verify their professional level by checking its legitimacy through an organization like the Better Business Bureau. The bureau will at the very least have an adverse reports concerning the counselor or company you are investigating. Also give a call to your state’s attorney general consumer protection office to check on the validity of a counselor or company.
2. Do Not Give Out Info
A legitimate debt consolidation company needs only to know your creditor’s names and addresses along with outstanding balance and present interest rates charged on outstanding debt. They do not need personal information such as Social Security numbers, birth dates, driver license numbers and other identification information to provide you with a service quote. Always protect this personal identification information along with any financial information such as checking or savings account numbers.
3. It Is the Same Deal
Do not get fooled by credit counseling services that offer you what appears to be an unbelievable deal. Each counselor will arrive at the same deal with the same set of creditors – yours. There is a pretty well established method that all participants follow in the debt consolidation industry. If one offers a lower monthly payment than others, walk away quickly. Some unscrupulous counseling services, although listed as legitimate, put into practice less than ethical billing practices that will cost you more in the long run. Always ask to see a complete list of fees to make an informed comparison.
4. The Quote Is Free
Legitimate debt consolidating services never charge for a service quote. Be careful though that you do not wind up paying exorbitantly high upfront fees like registration or account processing fees that these services require before actual debt consolidation takes place. Granted, these companies are in the business to profit from the debt consolidation services provided. But, always ask what part of the monthly lump sum turned over to them to pay your creditors is their service fee. Keep in mind that these counseling services also receive a fee from creditors for arranging payments.
5. Bring a Friend
Getting out of debt is a frightening and emotional crisis people face. Unscrupulous counseling agencies know this and use it to their advantage when making initial contact. Many want an immediate commitment and script their preliminary contact with emotional dialogue to get you to take immediate action. A great tip is to bring a friend – not a family member – who can help keep you focused toward getting information to make an informed decision and not grab at what appears to be a great solution to your highly emotional problem.
5 Debt Consolidation Credit Counseling Tips
