Credit Counseling Agencies
Feeling overwhelmed by debt and financial pressures? Not sure you can make the payment on your car loan? Struggling to make the numbers in your monthly budget add up every month? You don't have to do it alone. Before you declare bankruptcy or simply continue to hide from the harassing phone calls of your overdue creditors, take heart: there are organizations that can help you get out of debt and stay out of debt, and they will do it for free or at a very low cost.
Credit counseling agencies are designed to help consumers in financial trouble. They offer budgeting advice and assistance, and they can also act as an intermediary on your behalf with creditors to help reduce your debt burden, reduce your monthly interest and finance charges, and help you get back on track financially. Their ultimate goal is really to help you get out of debt and stay debt-free in the future, so they will also work with you on money-management skills, budgeting assistance, and other techniques to help you better navigate your finances. While you are working with a credit counseling service, there will be a notation made on your credit report to indicate you are in debt counseling. As soon as you complete your program, the notation will be removed.
Beware of companies promising to make you "debt-free" or offering to pay off your debts for you. These are not counseling agencies...they are companies seeking to profit from your financial hardship, and they can often make your situation worse. Any company or organization that asks you to pay a sizable sum of money up front in order to help you get out of debt is most likely trying to take advantage of you, so be careful. It's best to select a consumer credit counseling agency that has been accredited by either the Council on Accreditations or the International Standards Organization, or you can check with the National Foundation for Credit Counseling (NFCC), the Association of Independent Consumer Credit Counseling Agencies (AICCCA), or your local government consumer protection office to ensure the organization is legitimate.
