Tips for Choosing a Consumer Credit Counseling Agency

Do your comparison shopping. Get free quotes and look at all the offered services and fees charged. You should be able to find a decent and affordable consumer credit counseling agency.

Be careful if an agency charges high monthly fees or high upfront fees or “voluntary” contributions. If you are trying to get out of debt, you should not be required to pay high fees and with a little bit of research can find a company that it suited for you. 

Find out if the agency is a member of the AICCA (Association of Independent Credit Counseling Agencies) or the NFCC (National Foundation for Credit Counseling) – two well know groups that set standards and fee limitations.

Check if the agency you are considering is registered with the Better Business Bureau. If so check if there were any complaints.

Be wary of agencies that make outrageous promises, for example, that their services will not have an effect on your credit rating.

Before committing to any consumer credit counseling service, read testimonials and reviews of each agency’s previous or current clients.

Make sure to request a written statement of all agency fess and read it thoroughly before you sign up for the debt management program.

Look out for agencies that say they can get you out of debt quickly or reduce all your interest rates.  Eliminating your debt takes time and interest rates are controlled by your creditors. 

Before committing to an agency, make sure you check with your creditors that they are willing to work with the agency you choose.

Just because an agency displays the non-profit label does not mean it is better or worse.  It simply means it does not display a profit in the end of the year. It still has expenses and collects revenue.