How to Choose a Credit-counseling Company

14 September 18


Falling behind on your credit can be extremely stressful and financially detrimental. However, there are a number of companies that offer debt consolidation and counseling services that can potentially save you from bankruptcy. The best credit agency that you can sign up with is the one that you have done research on and know exactly what they can provide for you, as well as what you need to provide in return.

Pick a verified agency

The National Foundation for Credit Counselling, the  Association of Independent Consumer Credit Counseling Agency or another respected agency will have a history of protecting customers’ investments and personal finances. These organizations must go through a rigorous accreditation process, performed by an independent third-party organization, which carefully reviews the credit agency’s financial stability and the effectiveness of their practices.

Know the services your potential agency provides

Does the agency you are interested in charge for their services? If so, what are the fees and why do they apply to you? Knowing how you would like the credit counseling service to benefit you before you enter into an agreement will help you in the long wrong, and potentially save you a substantial amount of money. If you will be required to pay large fees in advance, or to continue paying monthly fees, then you should carefully weigh whether that credit agency is worth the cost.

Do not enter into long-term agreements

No credit agency can legally hold you into a binding contract for an extended period of time. However, many organizations will try to lock down customers with binding, long-term contracts that have high penalties for exiting early or breaking any of their numerous provisions.

Find which agencies offer the most opportunities for you

Many credit-counseling companies offer educational opportunities for customers to help increase their financial awareness and consumer confidence. The more educational materials a company has available reflect how much that company wants you to maintain your financial responsibility. Another sign of a good credit-counseling agency is if they are willing to help you customize an individual plan to repay your debt, or if they simply offer leveled packages for you to subscribe to. Look for agencies that understand your specific situation and what your needs are, rather than groups try to force your financial scenario into a pre-established plan.

Know the limits of what a credit agency can provide

Many agencies present themselves as the only option for debt repayment; however, a debt repayment plan from a credit agency does not erase your credit history. Signing with a credit agency also does not guarantee that you will get out of debt either. Know exactly the limits of what your agency can provide, as well as what it will take to get and maintain those services.

Have a bad credit? What to do if you need money? Payday loan providers give an opportunity to receive a loan even to a low credit rating owners.