Using Credit Counseling Services

If you are thinking of leveraging credit counseling services to more effectively manage your debt, consider the following:

What is credit counseling?

Credit counseling is offered by non-profit agencies and for-profit companies, and is focused on teaching people about how to avoid getting into debt (now and in the future) and how to pay off debt they have accrued.

What can credit counseling do?

Credit counselors can provide guidance on the best way to reduce your debt as well as help you negotiate with creditors to lower debt.

When should you think about credit counseling?

You may want to consider exploring credit counseling if:

• You are unable to make the minimum payments on your debts.
• You are paying your bills late all the time.
• Creditors and collectors are contacting you routinely.
• You have been unable to work out a payment plan with your creditors.

• They require an upfront, expensive fee.
• They are not accredited by the National Foundation of Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.
• They make great promises about what they can do for your situation.