Lesson 14: In our ongoing Wealth Wisdom video series, we’ll teach you financial fundamentals. In this fourteenth lesson, Jerrie Guthrey, a certified public accountant and credit counselor for 19 years, will explain how to choose a credit counselor:
Here are her ideas on what to look for when choosing a credit counselor:
- Watch out for any overly aggressive tactics.
- Make sure the agency is a member of the AICCA or the NFCC.
- Make sure they’ve been in business at least 10 years.
- Try to work only with a non-profit agency.
- Make sure they only have certified counselors and a clean report with the BBB.
- Make sure they’re liscenced and bonded in your state.
- Make sure they provide a written contract for you prior to your commitment.
- Ask a few questions.
- What are the fees? the upfront fee should be no more than $50.
- If you can’t afford the fees, ask if they will waive them.
- How much time is alloted for budgeting? there should be at least one hour provided.
- Is there any free educational material or sessions available?
- Find out what happens if you cancel your program. There should be a 3 day cancellation provision, giving you freedom to back out if necessary.
- Consider checking with United Way or your local family services agency to find out if they’re already affiliated with a credit counseling program in your area.
Learn More: This is great advice for how to choose a credit counselor. If you want to learn more, visit our Debt Management Counseling, section.
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