Many credit counseling agencies are not a scam. This doesn’t mean that you should not investigate their legitimacy.
Spotting good credit counseling agencies
Check with organizations that track companies and their activity. Check your local consumer protection agency. Check with the BBB (Better Business Bureau), and check with the National Foundation of Credit Counseling. Please note, even if the company you are checking out does not have a negative reputation, it is not a guarantee that they are good for you.
If you are considering bankruptcy, you can use the United States Trustee Program for a list of approved organizations that can give counseling.
Now what?
Well, you might want to consider whether you need a credit counseling agency or not. Credit counseling agencies usually:
- Provide you with support in your actions
- Provide you with knowledge and lessons on financial health
- Give you direction on planning and next steps in your process
- Work with creditors on your behalf
If you have issues with sticking to plans and being held accounting to take action, then a credit counseling agency might be a good thing for you. If you simply need more education, than a website like this one, or even our staff, will be of much more affordable and speedy help.