Financial obligations can pile up because of neglect or emergencies. In no time, you could drain your savings and max out your credit cards. That hurts your finances and your credit history. Who should you turn to?
Even if you’re late to it, finding a good advisor or a credit counseling agency is often your best option. You want to pay off your debts, rebuild your score, and—while you’re at it—stop the persistent calls from your creditors. As you assess your situation, this will help you choose wisely.
Key recommendations when looking for an agency
1) Prioritize reputation
Ask around about trustworthy firms. Friends or family may have used—or know someone who used—a proven, reliable company. It might feel awkward to talk about money, but the people you trust want to see you succeed.
2) Evaluate your options carefully
Your decisions affect your credit score. Bankruptcy should be a last resort because of its impact on your record. Look for an agency that helps you preserve your profile through a viable debt management plan and credit counseling.
3) Review the list of services
Experienced agencies handle everything from credit card debt elimination to complex monthly budgets and payment plans. Many post their offerings online. Look for variety, such as:
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Debt education
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Homebuying and mortgage counseling
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Student loan counseling
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Pre- and post-bankruptcy counseling
4) Choose an agency that offers financial education
Don’t let anyone rush you into signing a plan. Prefer an agency that takes time to teach you about your personal finances and gives you tools to avoid repeating mistakes.
5) Check the fees
Counseling isn’t free, but it shouldn’t be exorbitant either. You want to get out of debt, not add more costs. Look for a reasonable fee structure; avoid upfront fees and excessive monthly charges.
6) Confirm licenses and registration
In most U.S. states, agencies must be registered, and counselors must be licensed. Make sure the firm complies with the law and transparently publishes its registration status.
Let’s be honest: many people neglect their finances until they realize they need help. Fortunately, there are advisors and counselors ready to support you. Follow these tips and you’ll be much closer to finding a reliable agency and regaining control of your situation.
