Debt Free With Credit Counseling
14 Red Flag Questions To Ask a Credit Counseling Agency
If you are trying to become debt free with credit counseling, it's essential that you find a reputable company to work with.
Following is an excerpt from our ebook, Reduce Debt, Reduce Stress. Print out these questions when you contact a counseling agency.
1. Can I get information on your agency and programs? Don’t be pressured over the phone by an agency that insists on signing you up on the spot.
2. What should I do if I cannot afford the minimum payment? Ideally, an agency should offer a hardship program, rather than saying your only option is bankruptcy. But keep in mind that counseling agencies may be limited in their ability to offer plans that help those with very high debt or little income.
3. What kind of training do you have that qualifies you to assist me? Although it’s hard to judge credentials, some counselors are really nothing more than telemarketers who are paid to sign up as many people as possible for repayment programs. Counselors at NFCC member agencies must complete a comprehensive training program. Other agencies may offer comparable programs. Don’t be afraid to ask.
4. What security measures do you take to protect my information? Your personal and account information is extremely confidential and should be carefully protected against unauthorized access.
5. Can I get up-to-date, regular reports on the status of my accounts? You need to be able to verify that the counseling agency is, in fact, paying all your creditors on time. Find out how you will be able to monitor your account.
6. Will you answer my general questions before I decide to enroll? A counseling agency should provide a basic level of assistance, even to people who are not enrolled in its repayment program.
7. What kinds of educational programs and services do you provide? If you want a shot at becoming debt free with credit counseling, you need more than a payment plan. Financial literacy programs are important tools for helping you solve your money troubles and learn positive new habits. You can tell a lot about an agency by the quality of its educational materials and services. Take the time to look over their website, handouts or other publications.
8. Is there a minimum amount of debt I must have to work with you? Some agencies will turn you away if you don’t have “enough” debt. But what may not seem like a lot to a credit counselor may be unmanageable for you. Ideally, you want an agency that offers additional services or referrals, no matter what your situation.
9. What happens if some of my creditors will not participate with you? Some agencies only accept accounts from creditors that will make financial contribution in exchange for handling your account. A good counseling agency will try to help with as many of your unsecured debts as possible, regardless ofwhether the creditor contributes, if they want to help you achieve your goal of becoming debt free with credit counseling. (Keep in mind that the counseling agency won’t be able to negotiate better terms unless the creditor agrees.)
10. Is there a mandatory upfront fee? How much is it? Some agencies charge large mandatory upfront fees – $250 or more. That can be a lot of money for someone who’s having trouble paying the bills.
11. Will you sell my name or address to outside parties? Your information should always be kept confidential – between you, the agency, and your creditors.
12. How often do you pay creditors? The faster the agency pays creditors, the faster your payment will be credited. Slow payments by the agency can mean late fees or higher interest for you.
13. Who will help me if there’s a problem with my accounts or creditors? If problems arise, you want to know the agency will help resolve them.
14. Do you pay fees to others who refer consumers for counseling?If the agency pays finder’s fees for new business, it may be more interested in getting people on payment plans than in providing assistance or education. It may not be a deal-breaker, but it should be disclosed.
These questions come courtesy of our colleague Steve Rhode from GetOutOfDebt.org, who has given us permission to reprint them. The answers are ours.
Read real-life stories and find the best way to reduce your debt in our ebook: Reduce Debt, Reduce Stress
Have a question about becoming debt free with credit counseling? We will answer it for free!
Return to top of "debt free with credit counseling"
Available as
An ebook:
$14.95
|
"I'm happy to recommend a new book full of detailed advice on solving credit problems, Reduce Debt, Reduce Stress ... by ...
three smart folks ... The book is written in a simple, easy-to digest tone ..."
— Elizabeth Razzi, Columnist: The Washington Post
Gerri, I've always sensed in the quality of your work a profound commitment, closer to a vocation. I read the ebook — that chart on debt triage alone is a graphic stroke of genius ... Thank you so much.
The book Reduce Debt Reduce Stress is a must needed book for our economic times. The book gives real life solutions for helping families with their debt. This book really can give hope to people who are struggling with debt. This e-book should be kept on ones computer for reference. Having so many references to web sites available in the book is helpful for additional resources. In my practice as a CFP® I refer to this book often as I help my clients deal with their financial problems.
Here are reviews of the Authors' other books. |
Copyright © 2010: Gerri Detweiler, Nancy Castleman, Marc Eisenson
All Rights Reserved
Web Design: Good Advice Press
