Don’t sign up for one of these plans unless and until a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. A DMP alone is not credit counseling, and DMPs are not for everyone. 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 (DMP). In fact, some credit counseling organizations charge high fees, which they may hide, or urge their clients to make "voluntary" contributions that can cause more debt. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.īut be aware that “non-profit” status doesn’t guarantee that services are free, affordable, or even legitimate. Cooperative Extension Service operate non-profit credit counseling programs. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. If possible, find an organization that offers in-person counseling. Most reputable credit counselors are non-profit companies and offer services through local offices, online, or on the phone. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Counselors discuss your entire financial situation with you and help you develop a personalized plan to solve your money problems. Their counselors are certified and trained in consumer credit, money and debt management, and budgeting. Reputable credit counseling organizations (opens new window)Ĭan advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Get everything in writing, and read the service agreement carefully before signing it. Find out what services a business provides, how much it costs, and how long it may take to get the results they promised. If you’re thinking about getting help to stabilize your financial situation, do some homework first. Ask your state Attorney General if the company is required to be licensed to work in your state and, if so, whether the company is licensed. They can tell you if any consumer complaints are on file about the firm you're considering doing business with. Depending on the type of service, you might get advice on how to deal with your mounting bills or create a plan for repaying your creditors.īefore you do business with any debt relief service, check it out with your state Attorney General (opens new window)Īnd local consumer protection agency (opens new window). (You will be leaving and accessing a non-NCUA website.Īnd can’t work out a repayment plan with your creditors on your own, consider contacting a debt relief service like credit counseling or debt settlement. If you’re struggling with significant credit card debt (opens new window) Credit Counseling and Debt Relief Services
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