Credit Counselors
If you’re having troubles and you don’t feel comfortable negotiating
with creditors or collection agencies—or simply do not have the time
to do it yourself—there are professionals who can help.
Credit counseling services are designed to help consumers get their finances
under control. They can:
- help you create a budget;
- help you prepare to apply for a home loan;
- provide a variety of educational services; and
- put together a debt management or debt consolidation plan.
Some credit counseling services are non-profits and some are not. Some are
staffed by certified credit counselors and some are not. Some offer their
services for free and some do not.
The Federal Trade Commission (FTC) warns:
Beware—just because an organization says it is “nonprofit”
doesn’t guarantee that its services are free or affordable, or that
its services are legitimate. In fact, some credit counseling organizations
charge high fees, some of which may be hidden, or urge consumers to make
“voluntary” contributions that cause them to fall deeper into
debt.
You may be able to find a reputable credit counselor close by. For instance,
nonprofit credit counseling programs are offered by many:
- credit unions;
- universities;
- military bases; and
- local housing authorities.
If these avenues aren’t available or aren’t convenient, you might
ask for a referral at your bank or contact your local consumer protection
agency.
Next: Avoiding Scammers
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