|
SolveYourProblem.com
Article Series: Debt Relief & Debt Consolidation
I Want To Get
Rid Of My Debt...NOW!
Debt
Consolidation -
Choose a Credit Counselor Carefully
Recently passed by Congress, the Bankruptcy
Abuse Prevention and Consumer Protection Act of 2005 will require
people who are filing for bankruptcy to first undergo mandatory
credit counseling.
This is probably not a bad idea; after all, many people with
problem debt could probably benefit from credit counseling.
A good credit counselor can assist clients with problem debts
in establishing a repayment schedule, creating a personal budget,
and learning how to avoid debt and credit problems in the future.
The problem is that with the estimated one
and a half million additional people seeking credit counseling
each year, there
will undoubtedly be more credit "counselors" entering
the market, and many of them are only interested in reaping
huge profits at the expense of their clients. There are already
a number of credit counseling firms working in the marketplace
that advertise themselves as "nonprofit", when they
actually are closely tied to for-profit debt consolidation
firms. These agencies will strongly encourage their clients
to consolidate debt through their partner company, and the
result may be a long-term loan for the client that doesn't
help them at all, but reaps huge profits for the consolidation
firm. How can someone who is genuinely seeking legitimate,
helpful credit counseling choose a counseling agency wisely?
* Counselors should listen. If they start pitching a solution
to you during the first fifteen minutes you are there, you
should be suspicious. A credit counselor should be gathering
information about you in order to determine how best to help
you. They can’t possibly know how to help if they don’t understand
your problem. Unless, of course, they don’t care about your
problem and only want to sell generic “solutions.”
* Watch out for firms that want excessive fees up front.
Be particularly wary of nonprofit agencies that ask for fees
or “voluntary contributions” or nonprofit agencies that tell
you that they cannot help you if you do not pay a fee upfront.
* Beware of firms that ask for a sizeable fee to obtain a
copy of your credit report. Such agencies should be able to
obtain your report at no charge, and you are entitled to one
report per year for free.
* Sometimes, bankruptcy is unavoidable. Watch out if the
agency doesn’t mention bankruptcy at all, or if they change
the subject if you bring up the topic. Debt consoldators cannot
make any money on bankruptcy cases, but sometimes, that’s your
only option.
* Shop around. Talk to several different agencies and compare
what they tell you. Any agency that differs dramatically from
what the other agencies are telling you should probably be
avoided.
* Check with your local Better Business Bureau, and ask if
they’ve had any complaints about the agency.
* Watch out for firms that offer quick solutions to your
problems. You didn’t get into financial trouble overnight,
and you won’t get out of financial trouble overnight. Any competent
debt or credit counselor will know this and will undoubtedly
tell you that working your way out of debt takes time.
* See if the agency belongs to the National Foundation for
Credit Counseling or Association of Independent Consumer Credit
Counseling Agencies. Many do.
By taking a few simple precautions before agreeing to work
with a credit counselor, you may save yourself a lot of grief
and a lot of money later.
Click here to discover my current SolveYourProblem recommendation and choice pick for the fastest, easiest and best debt relief solution you'll find anywhere. Get it and reward yourself with more cash in your pocket.
# # # # #
© Copyright 2005 by
Retro Marketing. Charles Essmeier is the owner of Retro Marketing,
a firm devoted
to informational Websites, such as http://www.End-Your-Debt.com.
> Home > Debt
Free Articles: Main Page
|
