 Picking
a credit counselor: Louder isn't better
|  Dear
Steve,
Where do I find credit counseling agencies? I've
read your instructions and I'm ready to reduce my debt, but I only
hear of one or two from the TV/radio. Is there an avenue for credit
counseling in the Yellow Pages, online? What do I look under ... the
obvious? Thanks for your insight and help! -- Sue
 Dear
Sue,
I can tell that you are a perceptive person because your question
is right on target. Typically if you are looking for a great product
you will find it widely advertised in the marketplace. In what Sherlock
Holmes might call "The Strange Case of the Quiet Counselor," the
opposite is true. The best credit counseling agencies are all about
helping people. To do the best job they can, they keep prices for
their services as low as possible, and if you can't afford that,
they'll help you for free. As a result, they generally have lean
advertising budgets. Agencies with large advertising budgets either
have to charge more or deliver less. Usually it is the latter, sometimes
it's both.
This is not to say that if you see an ad you should
run away. Agencies have to get the word out somehow or you wouldn't
know they were there. It's a question of degree. You can indeed
find credit counselors in both the Yellow Pages, or business directory,
of your telephone book and online under "debt counseling" or
"credit counseling." Once there, you'll find many agencies,
certainly more than the one or two you've heard on TV and radio.
Your next step will be choosing the agency that is right for you.
Since you did ask for my insight, I'd like to devote the rest of
my answer to that process.
Finding a reputable credit counselor will involve
some research on your part after you have located a few via the
Yellow Pages or the Internet. Some things to look for are:
- Accreditation. This
is your chance to shortcut the search process. Look for accreditation
by the Council On Accreditation, or COA. They are the largest
accreditor of nonprofits in the United States, and they conduct
in-depth audits of agencies.
- Services offered.
Look for an agency that will give you a budget or a spending plan,
with a written action plan. You may think a debt management plan
is right for you, but without the two plans in place first, you'll
never know for sure.
- Fees. Get these
in writing, upfront and know what is included. They should be
affordable or free. This is one of the few industries where the
less you pay, often, the more you get. Not to get in trouble with
my ecclesiastical friends, but a church that charges a hefty admission
fee at the door or for its services might have its priorities
mixed up. Same applies here.
- Length of counseling time.
To find the right solution for your situation, your counselor
needs to spend at least 45 to 60 minutes with you to understand
what you need.
- BBB Rating. Your
Better Business Bureau can provide you with the agency's rating,
you're looking for "satisfactory," and alert you to any complaints
filed and whether they have been resolved to everyone's satisfaction.
Don't just look for a BBB seal on the Web site or Yellow Pages
ad. Call the bureau and ask. They're not supposed to make recommendations,
but often you can get valuable insights from them.
- Ask a friend, relative
or co-worker. You are not the first one to look for good
advice, and you sure won't be the last. Chances are, someone you
know has been through this already. The largest single referral
source for good counseling agencies are past clients. You don't
have to go into gory detail, just ask: if they were looking for
some budgeting advice whom would they recommend.
One last thing I want you to be aware of, Sue, is
that you should feel encouragement and be offered options, but not
pressure, from the company. If you don't feel comfortable, move
on to another one. There are many good credit counseling agencies
out there to help you. Good luck!
The
Debt Adviser, Steve Bucci, is the president of Money Management International
Financial Education Foundation. Visit MMI
for additional debt
advice or click here
to ask a debt question. |
