Credit Counseling Services Checklist - Page 2
True, your car may not go missing from your driveway if you stop paying unsecured debt (i.e., debt that is not "secured" with collateral, like most credit cards, unlike most auto loans). But you are still legally obligated to pay the debt, and the possibility of being taken to court will loom over you. You will likely be unable to get even "bad credit" financing if you still have debts in collections-good luck buying a car or house.
Not Necessarily Signs of a Reliable Agency
Nonprofit Status
Nonprofit status is essentially a tax designation, not a government endorsement of a group's mission. There are plenty of near-fraudulent credit counseling agencies that are registered nonprofits.
Respectable Name
Any group can put words like "National," "Alliance," "Assistance," and other trust-inspiring words in their name. But a name is just a name. Make sure to check any organization against the list above to make sure they're reliable. Also try searching for the group's name on a search engine. Don't just look for a lack of negative reports-that might just mean the group changed names recently. Instead, look for positive reviews from real people, and preferably mention on reputable third-party websites, such as news sites.
Ready to find a credit counseling agency? You're in the right place: the web is full of credit counseling agencies. Just use the checklist above, and you'll have no trouble separating the saints from the scams.
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