Do your research before choosing
a debt counselor
By Libby
Wells • Bankrate.com
It also requires a person to assess his or her needs.
A guy who lost his job and can't pay his Christmas bills might need
an agency that can not only help him work out his debt, but assist
him in finding another job. A person with a good job who's a chronic
spender needs more than a budget; he needs help changing his behavior.
"Each person's situation and the solution to it are
unique as a fingerprint," says Steve Rhode, president of Debt
Counselors of America.
When calling a credit agency, ask:
- What kind of services do you offer?
Find out all the avenues they use for assistance, whether it's
in person, by phone, mail or over the Internet. Go with the method
that makes you most comfortable. Besides debt management, some
agencies help people find jobs or cheaper housing, and offer seminars
on savings and other money matters.
- What are your counselors' qualifications?
Look for people with financial backgrounds, not someone who has
taken a home study course or who has a few hours of training.
- How much will it cost me?
Program fees at nonprofit agencies are small to nothing. They are
usually waived in hardship cases.
- Will my information be kept confidential?
Be sure the agency will not sell or disclose your personal
information to anyone outside the company.
- How often do you pay my creditors?
It's best to go with a company that will mail in payments
each week for you.
- Is there a minimum amount of debt I
have to have to use your services? A
good credit agency should be willing to help you, regardless of
your debt load. A $500 credit card bill can be a burden, depending
on your circumstances.
- What is the level of personal service?
Find out whether you will speak to the same person each time you
inquire about your account. If not, ask how the agency ensures
continuity in communication and records.
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