Credit Counseling

There are a number of resources available to help you identify an accredited credit counseling agency. We recommend you visit the following sites to search their lists of approved credit counseling agencies to find an organization licensed to do business in your state:

• National Foundation for Credit Counseling: (800) 388-2227

  

  The National Foundation for Credit Counseling (NFCC), founded in 1951, is the nation's largest and longest serving national nonprofit credit counseling organization.
  More About

• Association of Independent Consumer Credit Counseling Agencies: (866) 703-8787

  
  

  The AICCCA represents the common interests of member agencies to ensure that all who seek help with their debt problems receive the highest quality of assistance.
  More About

  
  

The following national, accredited credit counseling agencies can also provide you with counseling services:

• Money Management International: (866) 304-3818

• Novadebt: (866) 312-2887

• Take Charge America: (877) 822-6060

You might consider contacting a credit counselor if:

• You are having difficulty paying multiple forms of debt, such as credit cards, home mortgages, or auto loans
• You have already spoken with your credit card issuer without an effective resolution to your problems
• You can't pay the minimum amounts due on your credit cards or other bills
• You're consistently late paying one or more of your regular bills

If you decide to seek credit counseling, it is advisable to seek an accredited non-profit credit counseling agency, rather than a for-profit debt relief company.

By doing so, you can be confident that the agency employs the best business practices possible to ensure your funds are safe and the agency's mission is focused on you — the consumer.

Accredited agencies must adhere to the following policies:

• Be recognized as non-profit by the IRS
• Have all the proper licenses
• Audit their operating and trust accounts
• Provide reviews of their consumers' income and debts, along with written plans for reducing and eliminating that debt
• Disperse the proper payments to creditors at the proper times, usually twice a month
• Provide their clients with written statements at certain intervals
• Offer various educational programs and other ways to help consumers overcome their debt

Any company that makes these statements may be unreliable:

• We can remove your debt
• Pay us and we'll pay your bills
• Pay us a percentage of the bills we get rid of
• No company sues over unpaid bills
• We can get bad credit taken off your credit history
• Use our system and you'll avoid bankruptcy
• Don't talk to your creditors anymore

Questions to ask before selecting an accredited credit counselor:

• Is this agency a non-profit organization?
• Will I be informed of any fees associated with the services being offered?
• Are agency services confidential?
• Will they devise a plan tailored to fit my needs?
• Are the counselors certified?
• Are budget and credit education opportunities offered?
• Will my funds be protected?
• Is the agency accredited?

Information in this article was derived from the National Foundation for Credit Counseling and the Federal Trade Commission Web sites.