Credit counseling agencies can often help their clients get out of debt faster than they would without any assistance. However, some agencies don't always have their client's best interests in mind. Your financial future could depend on you asking the right questions first in order to make an informed decision.
Checklist: How to Choose a Credit Counseling Agency:
Choosing a credit counseling agency is a big step, and proof that you're serious about wanting to change your life for the better. Therefore, you want to make sure that the agency you choose truly has your best interest at heart.
The first thing you will find in your search is that not all credit counseling agencies are created equal. In fact, as detailed in an April 2003 report by the Consumer Federation of America and the National Consumer Law Center, there are some credit counseling agencies that end up doing more harm than good. The old adage is true - if it seems too good to be true, IT PROBABLY IS.
At a minimum, you should look for a non-profit, experienced credit counselor who can provide personalized service coupled with sound financial education to ensure a long term solution to debt. Here is a list of some of the more important items to help you on your way:
Ask what industry association they belong to -The credit counseling agency should be a member of AICCCA or NFCC, industry associations that require very high standards for their members. If they don't belong, they probably can't meet the...
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