Credit Counseling: Bad Advice To Avoid

A professional or well-meaning family member can give you bad credit advice, avoid receiving credit counseling bad advice by doing your homework. Research what they say by visiting your library or looking up information online.

Benefit of a Counseling Agency

The salespeople of a good counseling agency will be committed to your financial success.  Start with a non-profit agency, there are many non-profit organizations that offer free credit counseling services. Be sure the counselor is a well-trained professional and check their certifications. Many consumers opt for fee-based services, because they offer more services.  Fee-based counseling agencies can help negotiate your bad debt and cut down your debt.  Be careful, however, when a counselor, motivated by sales commissions, try to sell you an upfront contract.  Read the entire document and compare to other similar documents to be sure it is what you need.

Check Qualifications

The age old adage “you get what you pay for” is applicable, when seeking advice from credit counselors. When you are seeking effective credit counseling, check the qualifications of the person conducting the services. Services provided for free can provide counselors with with little training. Check references and track successful records.

Do You Understand

Some professionals get caught up on the delivery, never realizing they may be communicating on a level that is not understood. Unless you stop your counselor and ask for clarification, a misunderstanding may cost you. An effective counselor will always take the time to review what has been said and make sure you know the terms of the offer. If the advice you receive doesn’t make sense to you, chances are it doesn’t make sense to anyone else. Often, we have built in alarms that protect us from danger. Remember to trust your instincts and ask even more questions when you have a bad feeling about something.

Has It Worked Before

When advised about following a certain plan to reduce debt or even build wealth, always ask about how this type of plan has helped others. Successful credit counselors will offer references that you can check and hear testimonials about how this particular counselor or service helped other individuals. Third-party approval can go a long way toward providing you with an acceptable comfort zone when accepting credit counseling advice.

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