How to Choose a Credit Counseling Company when you are in debt

Credit counseling is something that everyone can benefit from particularly if your credit score is affecting your ability to purchase a home or obtain a car loan. In this situation, seeking the services of a credit counseling company is to your advantage. If you have been considering this option but you are unsure of how to go about it, it will behoove you to learn how to choose a credit counseling company. The following guidelines will assist you in your search for the right company.

Where to find legitimate companies

With the worry about identity theft and unscrupulous companies, it is natural to be cautious in this undertaking. However there are many legitimate companies that are willing to offer you credit counseling and assistance in regaining control over your finances. You can find credit counseling agencies by doing a search online, asking friends and family, checking with your local credit union, or even researching first time home buyer programs which offer credit counseling services. The United States Trustee Program is another place to find potential credit counseling agencies. Once you have a list of potential companies, you can then proceed to narrowing down your selection.

Doing your research

A list of names is just that until you have done sufficient research to facilitate you in making the best decision. After compiling potential credit counseling companies, you can then proceed to check them against the Better Business Bureau, Local Consumer Protection Agency, and your State Attorney General. If there are outstanding complaints against the company, this may be a potential red flag that you will want to be aware of. You may also want to read past testimonials and reviews to see if there is any insight about the types of service offered by the company you are considering.

Affordability as a factor

When deciding on the credit counseling agency that you feel will be best able to assist you, it is important to consider affordability. If the company charges exorbitant fees, your chances of regaining financial footing may be small. Instead look for agencies that offer free initial appointments and low cost mentoring to get the best possible value. Just because the service is affordable does not mean the quality won’t be up to par. Since you are looking for a credit counseling agency that will help you get out of debt, it will be in your best interest to choose an affordable service.

Ultimately you should feel comfortable discussing your finances with the credit counseling agency that you decide on. Confidentiality, trust, and guidance are the key factors of importance when choosing a great credit counseling agency. By taking the time you need and considering these points, you will be able to make the best selection.