Selecting A Credit Counselor; Asking The Right Questions.

When you find yourself thinking about using a credit counseling service, you need to be very careful. You need someone who will help you, not just some pushy sales associate who wants only to sign you up for their service.

You are about to place your financial life in someone else's hands. Make sure you have the answers to some questions before you do. Then make sure you like the answers to your questions. Here are some for starters:

Which of my creditors have you worked with in the past?

You have a list of your creditors. You want to compare it to the creditors they have worked

with in the past. Have they been successful working with your creditors in reducing payments,

lowering interest, and eliminating fees?

You need to know not all creditors will work with credit counselors. If all, or most, of your

creditors have, or will, you should investigate these services further. If not, credit counseling won't do you much good. To protect yourself, ask for a list (in writing) of any of your creditors they have worked with in the past.

Will my creditors be paid on time each month?

Two things come into play here. What are the due dates of each creditor and when during the month do you get paid? Nothing defeats the purpose faster than paying a creditor late, after you have set up a new payment schedule.

Some credit counseling services use a set date each month to make payments from the money you have given them. If they don't have your creditors change the due date you could be socked with late fees each month. Find a service that adjusts the due dates of your bills to work around the days you get paid.

How do I pay you each month?

The credit counselor can't pay your creditors until you pay them each month. Will they

remove money, each month, from your account with an electronic transfer or are you

required to send them a guaranteed check or money order? You want to make it as easy as

possible for this plan to work. Look for a service that will withdraw funds from your

account automatically each month.

When and how often will I get statements of my accounts?

Just because you have turned over a portion of your financial life to someone else to run, does not mean you don't need to keep track of what is going on. Your statements should break down your payments so you can see where the money is going. How much is going to interest, how much to the principal balances, and how much is being paid to the credit counseling service.

Who can I call?

When you have a problem or question can you speak with someone on the phone? Are you able to speak to the same counselor each time? If not, how long do you take to returns phone calls?

Do this up front. Make sure you can live with the answers you receive. Then test the service to see if they live up to what they have said. Check their service out before you sign on the bottom line. If you find that you can't get questions answered or telephone calls returned look for another service. Going through credit counseling is stressful enough without any added problems.

These questions will give you a good idea what kind of service you have found. There are other questions you may ask. If you think of any do not hesitate to ask and don't stop asking until you get the answers you need. It is your money.

David Wilding works with both individuals and groups to help them rid their lives of debt. For the past ten years he has attempted to change attitudes toward and acceptance of personal debt. Visit his website http://www.debtattack.com for more ideas, tools, and strategies to become debt free.

---

Debt Elimination 1

If you have multiple debts, you may well be wishing... Read More

Bankruptcy 101

Bankruptcy still remains a mystery in the eyes of many... Read More

Credit Card Debt Elimination

Credit card debt elimination can be done with a good... Read More

Life After Debt ? Strategies for Dealing with Problem Debt

Honorably and ethically rid yourself of burdensome debts using the... Read More

Free Quick and Easy Money Saving Tips ? Part 1

With the high cost of gasoline and the amount of... Read More

Debt and Financial Optimism in the UK Continue

With £1.3 trillion pounds worth of debt in the UK,... Read More

Turning Bad Debts into Good Debts through Investing Fundamentals

If you've ever earned enough money to put some aside,... Read More

Should You Invest In Savings Or Payoff Your Debts?

I have faced this financial question 8 years ago and... Read More

How Do You Spell Debt Relief?

Of all the problems possible in a marriage, finances cause... Read More

Bankruptcy - The New Scarlet Letter

Nathaniel Hawthorne's book The Scarlet Letter states in Chapter 2,... Read More

Take Careful Consideration Before Filing Bankruptcy

Filing bankruptcy is not fun! It is a last resort... Read More

Mandatory Credit Counseling for Those Considering Bankruptcy

Most Americans are aware of the sweeping changes in U.S.... Read More

How to Negotiate Debt Settlement

People over extend themselves financially as a result of a... Read More

IVA Information

If you're thinking about an IVA, it is essential to... Read More

The Road to Debt Relief

Living with debt is not something someone hopes for, but... Read More

Start Small and Your Wealth Will Get Bigger

We've all heard the phrase, "You have to start somewhere."... Read More

5 Ways to Get Out of Debt

It has been said that everyday more and more people... Read More

Bouncing Back from a CCJ

Should you be unfortunate enough to face a CCJ ?... Read More

Credit Card Debt & the Unfairness of the Universal Default Clause

Let's look at a real world example: A woman purchased... Read More

Budgeting and Debt Management

Debt management (specifically unsecured) is the first step to taking... Read More

The Bankruptcy Code Acknowledges the Validity of the Homestead Exemption

Many times the subject of bankruptcy seems baffling in its... Read More

Debt Relief -- Why Most Programs Have A 75% Failure Rate

Debt consolidation, equity loans, credit counseling, debt management plans, even... Read More

Credit Counseling or Bankruptcy: Which is Best for You?

People often get to a place where they simply can't... Read More

What Does A Bankruptcy Trustee Do?

Once you file bankruptcy a court appointed bankruptcy trustee will... Read More

Can You Escape the Trap of Ever Growing Debt?

It's difficult not to be concerned when facing numbers like... Read More

What is Debt Settlement and How Does it Work?

Debt settlement involves negotiating with a creditor or creditors to... Read More

Benefits and Drawbacks of Bankruptcy

Outlined below are some of the benefits and drawbacks of... Read More

Reducing Debt Before Its Too Late - How to Avoid the Pitfalls of Creeping Debt

Reducing debt usually isn't a high priority for people until... Read More

Debt Reduction, a Necessary Endeavour

Massive debt is something many Americans face. Debt reduction is... Read More

Bankruptcy Abuse

Bankruptcy is little more than a smack on the hand... Read More

Debt Settlement : What You Need To Know

Debt Settlement companies work with your creditors to help you... Read More

How Do I Lower My Debt Burdens?

How do I lower my debts?There are several ways of... Read More

Is Filing for Bankruptcy an Option for You?

Bankruptcy laws give debtors a way to resolve debt by... Read More