Are You Drowning in Debt?
Are you in debt up to your eyeballs? Sometimes it is better to get some help. There are professionals out there to help you get out of debt. If you feel like you may be drowning, look to one of the professional debt counselors to give you some tips. In the long run this credit help may save you money, and even more important a debt counselor may help you create a better life for yourself.
Choosing a Debt Counselor
Finding a good credit-counseling program can be a bit tough. The idea of a debt counselor isn’t something most people like to bring up with friends or family. This means you’ll have to do the legwork to find a debt counselor on your own. But there are a few things to know that will make the task easier and get the help you need faster.
First, look for a nonprofit credit or debt counselor. You’ve spent too much already, why pay more at a time when you are looking to dig yourself out? Nonprofits get most of their funding from creditors, not from your pocketbook.
Privacy isn’t usually an issue, but it’s wise to check what the counselor’s agency’s policy is on the privacy issue. Make sure they don’t sell your information to any firms. Also, check the enrollment and monthly fees. Many ask for only a nominal fee to enroll, such as $50 or $60, but some have been known to charge the full amount of your monthly debt payment, plus an additional 10% each month. Not surprisingly, the IRS is now investigating these type of credit counseling firms who claim non-profit status.
Second, find out upfront exactly what services you’ll receive, such as counseling, a debt-repayment plan and budgeting advice. The more credit counseling and financial services, the better. You may want to get all of this in writing so you know exactly what is available to you.
And ask if the organization belongs to any professional groups, such as the NFCC or the Better Business Bureau. Have them explain how they’re audited and if your funds are protected. After all, you’re sending them your money and trusting them with your credit and future.
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