How to Choose A Credit Counselling AgencyIf you decide to choose a credit counselling agency, spend some time researching your options. A trained agency should offer personalized service and educate you how to make appropriate financial choices achieve debt free living. Let's go through these important tips and learn how to choose a credit counselling agency. Interview Several Agencies If you know someone who has used agencies in past, ask them for the recommendations. Some people are reluctant to talk about debt matter, but it is harmless to ask around. You may ask your friends and family members as they normally are trustable sources to provide a wealth of advice on financial issues. You can also find a list of credit counsellors in the Yellow Pages and the Internet Search engines. Choose Licensed and Accredited Credit Counselling Agency In the U.S., most states require that a credit counselling agency needs to obtain a license before offering credit counselling, debt management and other similiar service. Also, you should make sure that the agency is a current member of either the National Foundation for Credit Counselling (NFCC) or the Association of Independent Consumer Credit Counselling Agencies(AICCCA). You can check these organizations'website to find a list of licensed agencies. Ask about the Qualifications of the Counsellor Find out if the counsellors are certified or accredited by an independant agency. If not, ask them how they are trained and what other qualifications they have to be related to the credit counselling agency service. Personal Information Security If you sign up credit counselling program, the agency will have access to your personal financial information, including credit card, loans, mortgages, credit reports and other bills. Does the agency have a privacy policy to protect your personal information? Make sure that your information will be secured by inquiring about their privacy policies. Look for Complaint Records Look through specific credit counselling agency's records through the Better Business Bureau. This place lists both resolved and unresolved complaints. You need to be aware of how long the company has been in business and how many complaints the company has had. It is rare for a long lasting company without any complaints. If a company does have complaines, be sure they are resolved. It could indicate problems if the counsellors have not been responsive to complaints. Get Verbal Promises in Writing Make sure all the promises made by the counsellor are written into a formal agreement. This agreement should describe how the services to be performanced, the payment term, fees, the duration to achieve the results, any guarantees offered, and the counsellor's name, business name, address and contact information. Fees Understand all the related cost that may be charged by the credit counselling agency. Fees include set-up fees, monthly service charges, overdue fees, late payment fees and other related fees. Ask if the organization waives or reduces fees if you are in financial hardship.
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