Credit Counseling Questions. When you find yourself thinking about using a credit counseling service, you need to be very
careful. You need someone who will help you, not just some pushy sales associate who wants
only to sign you up for their service.
The debt industry has grown dramatically as the American consumer has taken on an increasing load
of debt. This increased competition for the debt dollar has attracted some charlatans to the industry.
You need to be very careful you know with whom you are dealing.
You are about to place your financial life in someone else’’s hands. Make sure you have the answers
to some questions before you do. Then make sure you like the answers to your questions. Here are
some for starters:
Is the counseling agency affiliated with major industry groups?
There are two major debt industry groups, The National Foundation for Credit Counseling
and the Association of Independent Consumer Credit Counseling Agencies.
Affiliation with one of these is no guarantee you have a good agency but these groups do
have a set of standards which need to be followed, so it is a start.
Are there large up front fees?
The credit counseling agency will usually charge a small fee to set up your account. They then
will charge a fee to administer your plan each month.
If a large fee is required to begin your plan, watch out. Some companies have charged large
up front fees and then disappeared with the clients money. You need to be sure the money
you are paying is goi Details...
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