America Debt Consolidation

How To Choose A Credit Counselor

Search the Internet or look in your local yellow pages to find a list of credit counselors near where you live. Look for agencies that belong to either the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. You can find a list of member agencies if you visit either of these organizations Websites. Agencies that belong to these organizations are subject to strict regulations and have completed a highly detailed accreditation process.

You can also call the Better Business Bureau, your local consumer protection agency, or your state attorney general to find out if any complaints have been lodged against a particular agency. Narrow your list down to a handful of credit counselors and prepare to conduct initial interviews them. Your interview with a credit counselor should raise the following questions and concerns:

1) What are your fees and how are they calculated? Do I have to pay upfront?

2) How are you funded?

3) What are you accreditations, training, and/or qualifications?

4) Who regulates your activity?

5) Do you offer multiple repayment plans? What are my options?

6) What types of bills will you include in my repayment plan? Be wary if they suggest that they can include secured debts in your credit consolidation plan. They may simply be basing your fee on inclusion of these accounts despite the fact that they are not qualified to service them.

7) What happens if I can’t afford to meet the terms of your recommended repayment plan?

The following is a continuation of the list of questions and concerns that you should pose in your initial interview with a credit counselor:

8) Can I continue to access my accounts?

9) Will I be sent status reports?

10) Can you lower my interest rates and finance charges?

11) How frequently will I need to submit payments? Not all debt consolidation plans work on a monthly repayment schedule; some require more frequent payments in order to shorten the length of time you spend repaying your loan, and thereby reduce the total amount of interest you accrue on your principal.

12) How often will you send payment to my creditors?

13) What sorts of consumer education programs do you conduct?

14) Do you offer instructional materials without cost to me?

15) Is your agency audited each year?

16) What will you do to protect the confidentiality of my personal information against unlawful access? Well you sell my contact information to outside parties?

17) What if some of my creditors refuse to agree to your repayment terms?

18) Who can I rely on for help in resolving unforeseen dilemmas with my creditors or my accounts?

This may seem like a long list of questions, but think of all you have at stake—your privacy and your financial well being. Screening a credit counseling agency properly will lead to peace of mind, and ultimately your solution to a problem that has plagued you for far too long, the overwhelming scourge of mounting debt.