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How do I choose a credit counselor to assist in Credit Repair?

Home » Investing » Credit Repair » How do I choose a credit counselor to assist in Credit Repair?

It is possible to handle credit repair yourself. However, if the task is too daunting or the situation has become more complicated than you anticipated, you may want to consider working with a credit counselor. It is important to select a counselor that is reputable as well as one that is familiar with the consumer credit industry. The following is a list of guidelines that may help you find the counselor that is best for you.

• Ask what services they offer. They should offer a range of services, including budget counseling, savings and debt management classes, and counselors trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you. Avoid organizations that push a debt management plan as your only option before they spend a significant amount of time analyzing your financial situation.

• Make sure the counselor or agency is licensed to provide services in your state. Many states require that an organization register or obtain a license. Do not hire an organization that has not fulfilled the requirements for your state.

• Ask if they offer free information. Avoid organizations that charge for information about their services.

• Get a formal written agreement or contract. Don’t agree to participate in a debt management plan over the telephone. Get all promises in writing. Read everything carefully before signing. If you are told you need to act immediately, consider finding another organization.

• Get the qualifications of the counselors. Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.

• Get a detailed price quote in writing, and ask whether all fees are covered in the quote. If you’re concerned about being able to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your situation. If an organization won’t help you because you can’t afford to pay, look elsewhere for help.

• Employees who are counseling you to purchase certain services may receive a commission when you sign up for those services. Many organizations receive additional compensation from creditors if you enroll in a debt management plan. If the organization will not disclose what compensation it receives from creditors, or how employees are compensated, go elsewhere for help.

• Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse.

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