Consumer Credit Counselors - Do You Need One?

There seems to be some misunderstanding among the general public as to exactly what Consumer Credit Counselors are, what they do and who they can help...

There seems to be some misunderstanding among the general public as to exactly what Consumer Credit Counselors are, what they do and who they can help. The problem is more complex than it might appear on the surface because there are so many variables involved. Unfortunately, the reason for most of this confusion is because there are too many unethical people or entities out there who are trying to cash in on the misfortune of others. In fact, so many of them have popped up all over the place that they are trying to lure consumers in who don’t, in reality, need the services of a credit counselor at all. With just some good old fashioned common sense and a few pointers, you will be able to determine if you really need this type of help.

Before you go looking for a credit counseling agency, consider this. If you don’t meet the following criteria, you may not be in need of credit counseling. Ethical credit counseling services can help you if:

• You are seriously delinquent in one or more of your credit accounts
• You are consistently late paying one or more of your credit accounts
• You are being harassed/hounded by creditors
• You can’t make minimum payments on credit accounts
• You have been unsuccessful at making payment arrangements on your own

If you are able to pay your bills on time and are not seriously in arrears, then you probably don’t need professional services. Many people are being lured into paying exorbitant amounts of money because the advertising says that these ‘agencies’ can get your payments reduced, typically by promising to get your interest rates lowered. This is something you can do for yourself and you certainly don’t need to pay some scheister up to thousands of dollars to make a few phone calls for you! Pick up the phone, call your creditor, tell them that you would like your rates reduced and if they aren’t open to it, tell them that you will be moving your balance to another card and you will not be doing business with them in the future. With the current state of the economy, most credit card companies need to keep all the business they can and this might spur them into working with you. If not, then just do what you threatened, transfer your balance to a card company that is willing to work with you on interest rates.

If you determine that you meet the above criteria and you are, in fact, in need of a professional consumer credit counselor, then watch out for companies or ‘agencies’ that want to charge huge up front fees or make promises that seem unrealistic. Remember that old adage, if it sounds too good to be true it probably is. Also, make sure the agency you intend to entrust your finances to is accredited with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. If they are legit, they will be associated with one of those major organizations.

Follow common sense and do some research before you entrust your finances to anyone. There may be times that you sincerely need counseling and if you get the right advice you can begin to repair your credit. If you fall prey to less than scrupulous outfits, your credit can be further damaged. If you take the time now to research the right agency, it will pay off for you in the end.