Consumer Credit Counselors

Consumer Credit Counselors

5 Bankruptcy Tips: Choosing A Credit Counselor

New bankruptcy laws require bankruptcy filers to seek Credit Counseling. But many consumer advocates say: BEWARE! While some consumer credit counselors provide a legitimate service, many are scammers, charging high fees for services you could provide for yourself.

It's important to choose your credit counselor carefully. Here are 5 simple tips that can help:

1. Get personal -- It's always best to choose someone who can give you in-person counseling, rather than advice over email or the telephone. You can often find Good Credit counseling help at your local banks, colleges, Credit Unions, military bases, housing authorities, and branches of the U.S. Cooperative Extension Service.

2. Watch out for high fees -- Bad Credit counseling services often try to trick clients into paying high fees or "voluntary contributions" which can significantly increase their total debt. No matter what, be sure to get a quote in writing which lists all the setup and monthly fees BEFORE you sign anything. If the fees seem too high, look somewhere else.

3. Check credentials -- Find out if the credit counselor you're thinking about working with is licensed in your state. Look for counselors that are accredited and/or certified by a third-party organization. Make sure the counselors don't get extra compensation for getting clients to opt into high-fee debt management services.

4. Ensure your privacy -- Make sure that your counseling agency has high-level safe-guards in place to protect your private information, such as your address and Credit Card information. You don't want to become a victim of identity theft!

5. Beware debt management services -- If you need a credit counselor because you're filing for bankruptcy, watch out for any agency that heavily promotes debt management programs. These arrangements are often big scams that can cost you large amounts of money in fees. They also are NOT required by the new bankruptcy laws, despite what some shady credit counseling agencies may try to tell you.

About the Author

Jamie Clark is a researcher and writer for Credit-Counseling-Truth.com. For more useful
credit counseling tips
and bankruptcy information visit http://www.credit-counseling-truth.com

What is the best method for consumer Credit Card Debt relief?

We started a program with "Consumer Credit Counselors" This progarm has us pay the Consumer Credit Counselors, then they pay the Credit Cards every month. All they do is lower some of the interest rates. They don't negotiate amount owed. The payments are too high for us, so we looked into other alternatives. We found one company that will do it differently for less. They have you pay into an escrow account, and they pay off each credit card individually. They say they negotiate lower balances and interest rates. The payment would be lower and the payoff time cut in half. Does anyone know of any reason we shouldn't do this? Are there any other better ways? WHAT IS THE BEST WAY TO GET CONSUMER DEBT RELIEF with no loans?

I am not saying that debt settlement/negotiation is the wrong way to go. However, it will damage your credit further.

If you choose to settle on your debts, you can do this without paying enormous fees to a debt settlement company. Keep in mind that any forgiven debt of $600 or more is automatically reported to the IRS, in which you would owe taxes on it as a form of income.

If you can continue to make the payments on your current plan, then that is likely the best option for you. If you are having trouble, give your credit counselor a call to discuss possible changes to your account.

Credit Cards & Personal Loans : About Consumer Credit Counseling Agencies

 

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Consumer Credit Counselors

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Filed under: Repair Your Credit

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