Today there are a large number of debt management plans and consumer credit counseling service
companies operating today. In fact, it may seem as though your mailbox, telephone and television are
littered with them. When choosing the right company for you; however, it is important to keep several
important tips in mind.
Determining if You Need a Consumer Credit Counseling Service
You may not even need a consumer credit counseling service. These questions will help you determine
if a consumer credit counseling service is applicable to your situation. First, realize that these
companies should really only be used if you have a serious debt problem and not what is considered to
be a small problem. So, how do you know if your debt problem is serious or merely small potatoes?
Well, one of the first indicators can be that your minimum monthly credit card payments are taking up
at least 15% of your take home pay. If you have more than one delinquent revolving credit account this
can also be a good indication that you have a serious problem. Other tips include maxed out credit limits
on all your cards and the need to take cash advances just to pay your bills.
So, if any of these scenarios fit you then you may determine that you do in fact have a serious debt
problem and would benefit from a consumer credit counseling service. Be sure to choose the right
company; however, by doing your research first. If you choose the wrong company you could actually
have a bigger problem than you started out with.
Always check to see what kind of rating the company you are considering working with has with the
Better Business Bureau. If their rating is unsatisfactory, look for another company.
Selecting the Right Consumer Credit Counseling Service
It is also important to always make sure you understand exactly what kind of fees they will charge. Even
though they claim to be non-profit, and most of them do, debt consolidation services are not free. They
must charge a fee in order to cover the counseling services and monthly processing. You should not pay
any more than $50 a month in service fees.
Try to get a feel for how much time they are willing to spend with you. Companies that promise a fast
enrollment generally won’t be of much help to you. Look for a company that is willing to spend some
time with you to make sure you understand everything and are comfortable working with them.
Make a point to find out what the payment schedule will be for your bills. After all, regardless of who
sends out the payment, you will still be responsible to your creditors and if they send it out late if will be
you the creditors call. Stay on top of things and make sure your payments are being mailed timely.
Finally, make sure any company you consider has been in business for at least ten year and are
accredited by the Council on Accreditation. You can also look at reviews online for consumer credit
counseling service companies.
Related Article: Using A Debt Settlement Company