If It Sounds Too Good... Watch Out for Promises They Can't Keep.
Stay away from firms that promise "easy" debt consolidation programs or that offer to "repair" your credit report for a fee. If you face serious credit problems, there are no "easy" answers. Look for these answers instead.
NOTE: Sources used to create this list include MyVesta.org
1 - Will you send me information about your agency and programs? A credit or financial counseling agency should send you information without requiring anything from you-such as your account numbers and balances.
2 - Is there a minimum amount of debt required in order to work with you? The answer should always be "no."
3 - Is there a mandatory up-front fee? Beware of paying exorbitant fees to participate in a debt repayment program.
4 - What kind of training do your employees have? A home study course or a few hours of classes is NOT sufficient training for credit counselors.
5 - What kind of security measures do you have to protect my information? Will information you disclose be protected, such as your social security number, account numbers, account balances, etc?
6 - What educational programs and services do you provide? An agency should provide education and services that will help you change your spending behavior and prepare you to buy a home.
7 - How often do you pay my creditors? Make sure that the agency you work with disburses payments at least weekly. A repayment plan won't help you if your payment sits at the agency for a month.
Make sure you ask these questions and you should avoid choosing the WRONG credit counseling agency.
Danger Ahead...
Now let's take a look at some pitfalls to watch out for.
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