Looking for the Right Credit Counseling Agency?

If you've made the decision to solicit the help of a credit counseling agency, we salute you! Taking hold of your finances isn't easy, but it may reassure you to know that the need for financial stability and peace of mind has driven more than one million individuals and families to seek the assistance of ClearPoint Credit Counseling Solutions.

We're proud of the many factors that differentiate us from other "debt repair" or "credit fixing" operations you may have come across via infomercials or on the Internet. As such, we'd like to offer some important "do's and don'ts" concerning your interest in credit counseling. Take a few minutes to review the followings lists. Make sure to do the do's and heed the don'ts.

First the Do's

• Do check to see that the credit counseling agency you're considering is a member of the National Foundation for Credit Counseling (NFCC). The NFCC "sets the national standard for quality credit counseling, debt reduction services and education for financial wellness."
• Do ask whether the agency's counselors are certified - either by the NFCC or another respected organization. Certified credit counselors offer clients assurance that the advice offered represents the best practices of counseling agencies.
• Do ask whether the counselors' compensation depends on the services they recommend. You need advice that's beneficial to you, not a debt management program that someone is financially incented to sell.
• Do give preference to an agency with capabilities above and beyond baseline debt management programs. You want professionals who'll look at the big picture, who can provide you with tailored options and educational resources spanning every area of life that touches your financial well being.
• Do gain an understanding of the fees involved if you were to pursue a debt management program. Ask what your state's law says regarding monthly fees. Fees vary by organization, but on average, don't pay a fee for set-up and no more than $40 monthly thereafter.
• Do inquire about the agency's funding. If the agency is reputable, it will disclose the details. It's likely that the agency you select will be funded in part by creditors participating in debt management programs.
Do look into the agency's reputation with the Better Business Bureau. The BBB's web site is www.bbb.org. If the agency has a history of complaints, you may want to consider another.
• Do expect to spend some time discussing your situation with a credit counselor before he or she recommends any specific program or service. If you're pushed into a program after just a few minutes, it likely means that the counselor has not truly evaluated your case.
• Do ask where the agency is located. Like any business, if an agency won't share its street address, something is amiss.

And Now the Don'ts

• Don't pay for an initial consultation (counseling fee). This should be absolutely free from any reputable organization. Why would you agree to pay fees before deciding whether you'd like to work with a company?
• Don't select an agency that has no privacy policy. You do not need to risk having your personal information shared without your consent.
• Don't work with an agency that offers no written contract. When you're given a contract to sign, make sure it includes the complete details of your arrangement - a complete accounting for all fees, a thorough description of the services, the expected length of the program, and a clear list of goals, along with guarantees offered.
• Don't provide your personal credit account information before you're ready to work with an agency. Any reputable credit counseling agency will talk with you first about their services, programs, and fees.
• Don't believe outrageous claims touting effortless programs, dramatic reductions in your monthly payments, or services to erase negative information on your credit report. If an agency claims the ability to erase negative information, that agency has broken the law.
• Don't accept a debt management program unless a certified credit counselor has reviewed your case in-depth and has concluded that such a program is right for you.
• Don't work with anyone who pressures you. A prime example of this is when you're urged to sign up immediately. No reputable credit counseling agency would use hard sell pressuring techniques.

The above lists cover the basics. If an organization passes the scrutiny suggested above, that organization is likely to be reputable and trustworthy. We would suggest that you trust your intuition from that point forward. We would certainly invite you to contact us here at ClearPoint Credit Counseling Solutions - and, by all means, interview us as you'd interview any agency.