Avoid Organizations That Charge For Information

Category: Finance, Credit.

What services do you offer?

Avoid organizations that push a debt management plan( DMP) as your only option before they spend a significant amount of time analyzing your financial situation. Look for an organization that offers a range of services, and savings and, including budget counseling debt management classes. Do you offer information? Avoid organizations that charge for information. Are educational materials available for free? In addition to helping me solve my immediate problem, will you help me develop a plan for avoiding problems in the future? Are there set- up and/ or monthly fees?

What are your fees? Get a specific price quote in writing. If an organization won t help you because you can t afford to pay, look elsewhere for help. What if I can t afford to pay your fees or make contributions? Will I have a formal written agreement or contract with you? Make sure all verbal promises are in writing. Don t sign anything without reading it first.

Are you licensed to offer your services in my state? What are the qualifications of your counselors? If not, run. Are they accredited or certified by an outside organization? If not, how are they trained? If so, by whom?

Try to use an organization whose counselors are trained by a non- affiliated party. How are your employees compensated? What assurance do I have that information about me( including my address, and financial information, phone number) will be kept confidential and secure? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? Debt Management Plans( DMP) If your financial problems stem from too much debt or your inability to repay your debts, a credit counseling agency may recommend that you enroll in a debt management plan. If the answer is yes, consider it a red flag and go elsewhere for help. A DMP alone is not credit counseling, and DMPs are not for everyone.

Even if a DMP is appropriate for you, a reputable credit counseling organization still will help you create a budget and teach you money management skills. Consider signing on for one of these plans only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money.