What Questions Should You Ask a Credit Counseling Service?
Debt settlement companies may try to masquerade as credit counseling services. Ask a representative these questions to determine if the service you’re signing up for is what you intended. Otherwise, you could wind up with credit damage.
April Lewis-Parks, Consolidated Credit Director of Education: Hi. I’m April with Consolidated Credit and this is Ask the Expert.
Today’s question is: What questions should you ask a credit counseling service?
Working with a credit counseling service can be very beneficial. A certified credit counselor can help you find the best way to get out of debt, based on your needs, credit, and budget.
But you want to make sure you’re working with a legitimate agency and not falling for a bait and switch. Unfortunately, there are debt relief scams out there and some unscrupulous companies try to present their services as credit counseling.
So, you want to ask these questions to make sure you know what you’re getting into. First, ask if the counselors are certified and through which organization. Ask if the service is nonprofit, how and when creditors get paid and make sure to ask about fees.
With a debt management plan through a credit counseling agency, your creditors will be paid every month. A debt management plan has low monthly fees that are based on your budget and the state where you live.
These are some questions to help ensure you’re working with a legitimate credit counseling service. For more information, you can visit ConsolidatedCredit.org.
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Want to know if credit counseling can help you? Talk to a certified credit counselor today for a free debt and budget evaluation.