A reliable credit counseling company will help you to manage your debt and money. They achieve this by coming up with a budget and give you a few tips to stick with it. The advertisers are trained and certified to help people with their credit and debt management.
They will consider your financial state and will help you come up with a plan to solve your financial issues. A counseling session can last for about an hour, but you may need to attend more than one session.
Well-reputed credit counseling agencies send free information about their services without asking you for any. If a firm doesn’t take the first step, it’s obvious they are not willing to walk the mile.
Narrowing Down Your List
You have to search the market on your own and make a list of potential companies. Once you got the list, you have to narrow down your options with the help of a State Attorney General, and Consumer Protection Agent.
You can check a state-owned trustee program for their recommendations about approved pre-bankruptcy counseling agencies. Once you have narrow down your list, you need to prepare yourself for the interview session.
Ask Some Important Questions
The Credit Counseling Agency will have a few questions for you. It makes sense; they need to learn about your spending habits before making up their mind. At the same time, you can ask them a few questions and evaluate whether you should proceed with them or not.
Here are 10 of many questions you should ask your counselor before you sign for anything:
1. What Services do you offer? You need to ask them about the wide range of services they offer. This includes budget counseling, debt management workshops, and savings. Avoid any agency that shoves a debt management plan to your face.
2. Can I get more information? You need to obtain as much education material about the company as possible. This should be free, and a company has no right to charge you for it.
3. What’s your plan of action? Once they are done interviewing you, you need to ask them about their plan of action, and how will it help your condition.
4. What’s your fee structure like? Be upfront about it, ask if this is a set-up or monthly fee structure. You need a quote in written form.
5. What if I can’t afford your fee? This happens, and there are some organizations that offer help even if someone cant afford their fees right upfront. You just need to search for an agency that is willing to.
6. Do you have a formal written agreement or contract? Never sign anything without reading it with great care. Ensure every promise they made is written there.
7. Are you licensed in the State? Don’t be afraid, you have the right to ask whether they are legit or not.
8. What are your counselors’ qualifications? Ask whether the staff is accredited by any outside organization, if yes then which one, and what about their training.
9. Will my information remain secured? Ask the company whether they will keep your information secured, or they can sell it to a third party afterward.
10. How do you pay your employees? Yes, do they work on monthly pay or commission. If I sign up, do they get paid a percentage or it’s just part of the job.
You can, of course, ask more or different questions, but the 10 above should give you a rough idea on what’s important to ask to your credit counselor. It’s better to ask too many questions than taking on something you don’t really understand!