IMPORTANT POINTS TO CONSIDER WHEN HIRING A CREDIT COUNSELOR

by JLGerardo

Heavy in debt? You are not alone. A number of Americans are in the same dire predicament you are experiencing right now. When you can no longer pay your financial obligations, you resort to the last legal option available to financially troubled American businesses.

You file for bankruptcy.

In the past, this process was fairly easy. But with the passing of Bankruptcy Abuse Prevention and Consumer Protection Act in 2005, anyone who intends to file for bankruptcy is first required to seek the services of a credit counselor for counseling sessions. As mandated by law, credit counselors assist financially distressed individuals by drawing out a sound personalized repayment scheme to manage finances.

To reap maximum benefits, here are ten important points to consider when hiring a credit counselor:

1.) DO SOME BACKGROUND CHECKS ON THE REPUTATION OF CREDIT COUNSELING AGENCIES
Credit counselors are employed by counseling agencies. It is therefore important to check the reputation of prospective counseling agencies before hiring their credit counselors. One way to do this is to check the Better Business Bureau. If the company has been operating for some time without any glitch, then go for it. It’s a good choice. On the other hand, if the counseling agency has any pending complaints, then that should alert you to look for a credit counselor somewhere else. Ask your friends and acquaintances for feedbacks on a reputable credit counseling agencies, if possible.

2.) COMPARE COSTS
Let’s face it. Credit counseling services cost you money. Whether you like it or not, a credit counselor charges his services to your credit card. Some unscrupulous credit counselors demand exorbitant fees for their advice. Others maintain competitive pricing. When you are heavily in debt, you don’t want to incur additional burdens by hiring expensive counseling services. Why go for higher-priced service when you can have one at a much lower cost? It is just reasonably fair that you want to get your money’s worth by comparing credit counselors’ fees and determine who charges the least for the same type of counseling service.

3.) INQUIRE COUNSELING AGENCIES IF YOU WILL BE WORKING WITH THE SAME PERSON ALL THROUGHOUT THE PRESCRIBED REPAYMENT PERIOD
You hire a credit counselor not only to comply with the law but also for support during the difficult debt repayment period. You want someone to understand your financial situation, and build rapport with. However, there are credit counseling agencies which give you different individuals each time you call the company. One person answers the phone for you on Monday. Another one receives the call on Tuesday, and still another credit counselor talks to you on Wednesday. Stay away from counseling agencies which gives you the nearest person on the phone at the time of your call. It’s generally unnerving. As much as possible, insist on only one credit counselor and stick with him.

4.) ASK REGARDING THE EXTENT OF THEIR SERVICES
While credit counselors generally offer advice to get you out of financial rut, there are a few who take the extra mile and offer you related financial management services like online education services, for free. Take time to ask around and settle for these types of individuals.

5.) MODE OF MEETING
In general, credit counselors offer services through a one-on-one meeting on their offices. Others offer services through phones. If talking by phone to a remote individual hundred of miles away doesn’t bug you a bit, then go ahead. It really doesn’t matter in the long run. However, there are consumers who prefer to discuss their financial burdens face-to-face with a credit counselor. If you like this mode of meeting, make sure you convey this preference beforehand.