Credit Counseling - Can It Get You Into More Trouble? - Page 3
Debt management is just a part of the debt issue and you may need other services to help you accomplish what you need. Look for a wide range of services without bias. If an organization says they have a wide range and then push a particular service such as debt management plan (DMP), then they are biased. How can they help you with both the immediate debt problem as well as long term plan to help you stay on track? Will you have a formal written agreement or contract with them? You need everything in writing and you need time to review them before you sign. Consider verbal promises invalid.
Once you get the information in the mail you need to confirm that the credit counseling organization is both legitimate and reputable. You can check their legitimacy by contacting your state Attorney General, local consumer protection agency, and Better Business Bureau. See if there are licensed and if there are any complaints against them filed by consumers. Remember that a clean record is just a start and does not guarantee service.
Checking their reputation is harder since they deal with confidential information and you cannot ask them for referrals. I understand that asking friends and family could be a little awkward but getting recommendation from someone who actually has dealt with an organization is one of the best ways to screen a firm.
Many reputable credit counseling organizations offer free educational materials and workshops. They are in the business of helping you get to the root of your budgeting issues. Take advantage of their workshops that will also give you an opportunity to check them out in person.
Your financial institution and your local consumer protection agency could also be good sources of information.
I like what William F. Halsey said about problems. "All problems become smaller if you don't dodge them, but confront them."
May your problems become smaller.
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