Consumer Credit Counselling
FAQ
If you have a recommended consumer credit counselling agency, it's important to draft a series of questions before meeting with them. Ensure that you do not pay any agency until you have satisfactory answers to the following questions:
Is your agency non profit? Not only do non profits offer the lowest fees, they generally provide the most value. Ask for a copy of their IRS approval of status letter, which they should have on hand. For profit counseling agencies may push their own plans or loans to make an extra buck at your expense.
What exactly do you offer? A credit counselor should work with you to develop a realistic budget, offer advice on how to reduce spending, and create a debt reduction plan with an intended timeframe.
What are your fees? Most non profit consumer credit counseling firms do not charge much if anything for simple advice. They will charge for creating and maintaining your debt management plan, which should not cost more than $50 per month. Think of as having a personal trainer to help get you out of debt. Seedier agencies will either ask for an up front fee or charge numerous smaller fees for individual services. If this is the case, ask for a list of all services and their fees.
Do you assign each client their own counselor? Like personal trainers, you can get much better results when working with a professional one on one.
How are employees paid? In the financial industry, many employees earn commissions for steering clients towards certain products and vehicles. Make sure your counselor is paid a salary instead.
How do you protect my personal info? With the growing numbers of identity theft, it's important your agency has your info safely stored away.
If you've found an agency who fits this criteria, check them out with the Better Business Bureau and the Federal Trade Commission (FTC).
|
