Credit Counseling Program

How Can This Program Benefit You?

Credit counselors and their services

Nonprofit credit counseling programs are the most common type of programs out there. Most will help you in a positive way to solve your debt problems. However, the nonprofit label for a credit counseling program doesn't necessarily mean that its services will be free, cheap, or even legitimate. Some might charge hidden fees or want unnecessary contributions that could plunge you further into debt.

Most credit counseling programs offer services through the internet, local offices, or through telephone consultation. The most effective type of credit counseling program is one that offers in-person counseling. Try to get in-person counseling if possible. From your counseling, a good program will teach you how to manage your money and debts, develop a budget, and offer free workshops and educational materials. Counselors should be certified and trained in the areas of financial management.

Shopping around for a credit counseling program

Reputable credit counseling programs should be able to send you free information about their program, without the need to know any personal information about your financial situation. You should not work with a credit counseling program that will not provide this for you. Getting free information will enable you to select from a variety of programs to find the one that's best for you. You can also do background research on credit counseling programs by seeing what your local consumer protection agency, attorney general, or Better Business Bureau has to say about them. If consumers have registered complaints about the credit counseling program, they might not be the best to use.

Questions to ask

After you narrow down which credit counseling programs you might like to use, you can make a final decision based on probing questions with which to "interview" the credit counseling program. A good question to ask is if agreements and price quotes can be made in writing. Formal written agreements and contracts can minimize confusion later on. Another good aspect to ask about is the qualifications of their counselors. Find out how they are trained or if they certified or accredited to help you with your problems.