If you are feeling overwhelmed with the debt you have, you may want to consult with a consumer credit counseling service. There are many nonprofit services available that can provide you with budgeting and financial advice and help you with a debt management plan. However, you do need to investigate the service before agreeing to work with them. Some credit counseling services charge high fees and are really not qualified to help consumers with their debt problems.
You can find credit counselors locally in the area where you live and also on the internet. There are even companies that offer their services over the phone. If at possible, you should try to meet with a credit counselor in person. You can ask family and friends, as well as consumer agencies and officials at your bank for referrals.
Check the credit counseling service with your local branch of the Better Business Bureau as well as the Attorney General office in your state and local consumer protection groups to make sure there haven’t been any complaints filed against the service. Also make sure the credit counseling service complies with all local licensing requirements.
A competent credit counselor should be able to help you with financial advice and debt management options as well as helping you set up a budget and plan for getting out of debt. Some credit counseling services only want to help you set up a formal debt management plan, but this may not be the best option for your situation. Find a credit counseling service that offers a wide array of services including budget and money management advice in addition to help with debt management plans. A good credit counseling service will also have plenty of free materials and offer workshops on financial and debt issues.
Be wary of any credit counseling service that tries to push you towards a debt management plan or asks you for your personal and financial information before sitting down to discuss your situation with you. A legitimate service should first provide you with information about their services as well as the background and experience of the credit counselors. You want to work with competent counselors who have a background and experience in budgeting and debt management. The credit counseling service needs to listen to you first before trying to sell you on something or offering you a solution.
You should also compare the fees of different credit counseling services. Some agencies will provide you with free service if you do not have the means to pay. Also read over any written agreement before signing it. A credit counseling service can help you get back on track and negotiate with your creditors on your behalf. You just need to do your background research upfront to ensure that you are working with a legitimate and experienced credit counseling service first.