Free Debt Counseling - Isn't What It Used
To Be
It should be said, right up front,
that any legitimate organization should offer
Free Debt Counseling but...
When consumers
realize they are in over their heads financially, they usually
seek some form of debt relief that begins with counseling. It
should be said, right up front, that any legitimate
organization should offer free credit counseling. If it isn’t
free this should raise a red flag. In days gone by all credit
counseling services were lumped into a category known as
Consumer Credit Counseling Services (CCCS) and were affiliated
with the National Foundation for Credit Counseling
(NFCC).
For the most part
they were service oriented organizations and were established
to offer consumers a public service. Of course just because
they were affiliated with a national organization didn’t
guarantee that they were 100% above board, but for the most
part they were reputable organizations that were compliant with
the guidelines and by-laws of the NFCC. Something happened
along the way that paved the way for less than reputable
companies to set up shop and prey on the unsuspecting general
public.
That something was
the Federal Government. Although it wasn’t intentional, the new
bankruptcy laws that came into effect in 2005 opened the door
for a new breed of credit counseling companies. It was mandated
that now, before an individual could file for bankruptcy they
must undergo credit counseling within 180 days prior to filing.
Whether the consumer is filing under Chapter 7 or Chapter 13
makes no difference. The law reads the same for both. This
being the case, and with so many people now filing for
bankruptcy because of the serious state of the economy, a whole
host of counseling companies popped up out of nowhere to cash
in on this need. Most of these companies can be found
online.
You will probably
see a plethora of websites that advertise free debt counseling.
While this may indeed be true, the other services they offer
will most likely come with a price tag and that’s where you
need to be careful. They lure you in with the word free, but
the only thing that is free is the debt counseling. Reputable
companies that offer valid services to consumers will tell you
up front that there is a fee involved with other services such
as debt negotiation or credit consolidation loans or any other
of the various services they might offer.
Before you talk to
any of these companies do some research. There are online
reviews that you can check out that list several companies
side-by-side to list:
• services
offered
• costs to consumers
• if they are affiliated with the NFCC
• if they are members of the Better Business Bureau
• what their score is with the BBB
There are a host of
questions you need to ask up front. But most importantly pin
them down to whether or not they will charge you a fee should
you decide not to opt for further services. If it is free
counseling, it is free, and there are no two ways about it. And
remember, if something doesn’t feel right, don’t sign any
contracts. You really can find plenty of information online, so
if you have doubts about a company you are talking to, check
them out before you commit to anything. It is up to you to
protect yourself and it is easy to do with all the information
you need only a mouse click away.
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