FAQ - Credit Counseling

Frequently Asked Questions:
Credit Counseling

The ability to choose a credit counseling agency can be quite the challenge. The consumer must decide which agency is best for them. The consumer has to decide where to place the trust of their finances and confidential information.

Checking with the Better Business Bureau about any complaints filed against any of the organizations being researched. Find out what the complaints were about and whether or not they were resolved to the client’s satisfaction. Confirm with any organization of interest that they are a non-profit organization. The non-profit status will not guarantee the organization will work to consumer satisfaction, but they will be charging a fair fee and providing educational information and that can be the sign of a dependable organization.

Although many credit counseling agencies will provide education and assistance, consumers must be aware of the organizations who advertise they can provide "overnight resolutions" to their financial dilemmas.

Confirm the creditors are willing to work with the agency of your choice. If the creditors do work with that agency, it would be wise to follow up to make sure payments are being received.

Inquire about where the credit counseling agency receives their funding, how they are regulated, and if they get audited. Ask if they certified by the International Standard of Operations (ISO compliant). Make sure their counselor are certified and by which organization.

Are you having difficulty paying your bill every month? Do you wonder where the money goes every month? How often do you put daily expenses on a credit card? Have you been able to put any money away for savings? If you have answered "yes" to any of these questions then you should consider credit counseling. A credit counseling agency will assess your monthly income and expenses.

Creditors can view the use of credit counseling agencies as a step in the right direction for the consumer. The consumer is view has entering into a payment arrangement that will ensure on time monthly payments. The creditor is also assured the balance is being paid in full as a result of the arrangement.

As a consumer you will be provided a certified credit counselor to work with you. The certified credit counselor will work with you to have a thorough understanding of the financial situation. The counselor will help identify any issues of spending and money management. The counselor can advise you of past mistakes and how to avoid them in the future.

Another benefit for working with a credit counseling agency is the certified counselor help in creating a budget that is manageable for them and is developed for the client to pay all of their monthly bills in a timely manner. The goal is for the budget to help the consumer avoid any more problems of and have their finances under control.

The certified credit counselors are educated, experienced, and express concern for the needs of their clients. It is understood that being in debt is a stressful and often frustrating feeling for many people struggling with their finances. The counselors understand the goals people wish to achieve after conducting a thorough counseling session.

While participating in a debt management program, you are not able to use the credit cards. The reason being is you are not supposed to incur more credit card debt while trying to pay down the debt. Furthermore, the creditors may have you close the accounts while you are enrolled in a debt management plan.