Want to be DEBT FREE? Debt Consolidation may be the key!

Select the Right Agency for Consumer Credit Counseling

The right consumer credit counseling agency can make all the difference when getting your financial life back on track. Unfortunately, many "non-profit" organizations are more interested in turning numbers than actually helping clients. Many have comfortable affiliate deals with non reputable "for profit" agencies. Consumers need to know what to look for when selecting a credit counselor. We have put together a list to keep in mind:

• Are they a member of the Better Business Bureau or other recognized organization?
  Such organizations work to protect consumers by publicizing complaints made against companies. Quality standards set by organizations help to insure assistance is provided by trained and qualified counselors. Accreditation is easily verifiable by clicking a thumbnail on the website. Click here to see an example.
  
  
• Get the most out of your Consumer Credit Counseling
  A true counseling professional will spare no effort to thoroughly understand your personal financial situation. Session time may vary amongst different counselors, but only you can insure the counselor understands your personal circumstance. By reviewing your income, expenses, assets and liabilities your counselor can develop a financial profile that's right for you.
  
  It doesn't matter if you meet the counselor in person, by telephone, or online. As long as you both work together, a realistic financial plan to get you debt free can be developed. Typically the first session with a consumer credit counselor should last a minimum of 90 minutes.
  
  
• Be wary of costly up-front or monthly charges
  Optimally agencies should make their services available to the public regardless of ability to pay. Fees should be as low as possible, taking into consideration the financial situation of the client.
  
  Fees shouldn't exceed more than $20 for a professional consumer credit counseling session. You may be able to find such services for free. Even a debt management plan should cost no more than $60 to start.
  
  
• Do all payments make it to your creditors?
  With debt consolidation plans, payments are usually made to the agency handling your case. Sometimes agencies retain the first payment as a "fee" or "donation." This is nothing but highway robbery. Ask the consolidation agency if they have any such policies. Also, make sure they disburse payments to creditors in a timely manner and don't hold onto them for any period of time. Success of any debt consolidation plan depends on paying creditors off on time.
  
  
• Will the Agency work with all your creditors?
  Before entering any type of debt consolidation service make sure the organization you choose will work with all your creditors. Many times creditors refuse to "make room" in order for consolidation agencies to turn a profit. This results in agencies refusing to work with some creditors and you left with a partial solution for your financial problem. Find out what policy your agency abides by with regard to creditors who refuse to recognize debt management plans.
  
  
• What other financial Services does the agency provide?
  Reputable agencies that provide consumer credit counseling typically provide an additional full range of services. If you feel that an agency is just trying to push you into a debt consolidation program - watch out! You probably need a wide selection of services which can be tailored into financial program that is suitable to your needs.