Financial obligations may heap up due to neglect or emergencies. Soon, you may find yourself wiping out your savings and maxing out your credit cards. This hurts your finances and credit rating. Who are you going to call then?
It may be late, but finding a good credit counselor or counseling agency is your best option under the circumstances. You want to pay off your debts and re-establish your credit score, not to mention get rid of the pesky telephone calls from your creditor. As you contemplate on your situation, what can guide you in choosing a good credit counseling agency?
Here are some of the most widely recommended tips when looking for a credit counseling agency.
Go for reputation – Ask around for a reputable credit-counseling firm. Chances are that your friends or relatives have used or know someone who has used the service of a proven, trustworthy company. It may be embarrassing to discuss your finances, but keep in mind that your most trusted friends and family will want you to succeed in your dilemma.
Weigh your options – Your decisions will reflect on your credit score. In that case, bankruptcy should be far from your options as it will impact your credit rating. Look for an agency that will help you preserve your credit standing through a doable debt management plan and credit counseling.
Check-out the agency’s list of services – The most experienced credit counselors will have helped managed several types of portfolios, from simple credit card debt eradication to complicated monthly budget and debt management plan. Many credit counseling agencies have websites that list down the services they offer. Look for variety in the services, such as bankruptcy filing (before and after), debt education, home buying and mortgage counseling, even student loan counseling.
Choose an agency that offers financial literacy – Do not be rushed into signing up for a debt management program or various services. Seek an agency that is willing to take the time to educate you on your personal finances. Such a counselor will provide you with tools and resources that will prevent you from doing the same mistakes again.
Check out the fees – Credit counseling is not cheap, but neither should it be exorbitant. After all, you want to get out of debt, not enter into more. Seek an agency that suits your budget. The charge should be reasonable. Avoid upfront fees and recurring monthly charges.
Look for properly licensed agencies – Most states require credit counseling companies to register, and their agents to have a license to practice. Make sure the credit counseling firm abides by the law. Licensed credit counseling agencies such as Score Inc. vouch for their legitimacy by keeping their website visitors informed of their registration status.
Let’s face it: some become complacent in guarding their finances until they finally realize they need help. Good thing that financial advisers and credit counselors are here to help. Follow the above tips, and you’ll never go wrong in finding a good credit counseling agency.
