Finding a company that offers debt counseling is no problem. There are advertisements for debt counseling companies on the television, radio, and the internet. The real problem is finding a legitimate debt counseling company who will actually work with you to take care of your debt.
Check with a Reputable Organization
All legitimate debt counseling agencies are associated with a professional organization for debt and credit counseling companies. These organizations are the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA). Both organizations have standards that debt counseling companies must adhere to before they can become members.
Do a Background Check
Once you’ve confirmed that a debt counseling company is a member of either the NFCC or the AICCCA, find out how the company has treated its customers in the past. Check with the Better Business Bureau to see how many disputes the company has had in the past and whether the dispute has been resolved.
You can also use a search engine like Google to check what other people are saying about the debt counseling company. Do a search for the company’s name and add in the word “reviews” to come up with online reviews. If there are a lot of complaints, watch out. On the other hand, if it seems like a lot of people are singing praise about the company, it could be the sign the company faked its reviews.
Find Out What the Debt Counseling Company Offers
You can tell a lot about whether a company is legitimate by the services they offer. Many scam companies only offer debt consolidation or debt settlement, both of which could be damaging to your credit score. An honest debt counseling agency will offer credit counseling, financial planning, budgeting advice, and other financial management advice.
If a company promises or guarantees you any type of result, walk away. No legitimate debt counseling company can guarantee to lower your interest rate or monthly payment. They can’t guarantee to improve your credit score or to clear your credit report of negative information.
How Much Are the Services
Price is another factor that separates legitimate debt counseling companies from the scammers. The best companies to work with are those that charge around $50 for their services and offer a price reduction if you have trouble making that payment. On the other hand, watch out for companies that charge a percentage of your debt or that won’t do anything with your debt until you’ve paid a large fee.
Trust Your Instincts
Often, we can tell whether any company, debt counseling companies included, are legitimate. If something is tell you to walk away from a company or if you’re questioning the integrity of the company, don’t waste your money on their services. There are far too many legitimate debt counseling companies to fall prey to one that only wants to profit from you.
