Do I need Credit Counseling?

For many consumers, admitting that they have a debt problem and need help isn't an easy task. At what point does one realize that they truly need credit counseling? It's a conclusion that each individual must come to on his or her own. If you're having trouble deciding whether or not you should hire a credit counseling agency, ask yourself these questions:

• Do you have a difficult time making your monthly payments on credit cards or loans? Whether it's due to a lack of money or just plain old forgetfulness, credit counseling can help you get back on track.
• Have lenders sent any of your debts to collections? If you have collectors constantly harassing you then chances are you could use some help.
• Are your interest rates higher than they used to be? Typically, if you're late making payments or accumulate too much debt, lenders will increase your interest rates as a penalty. With the assistance of a credit counseling agency, you may be able to acquire improved interest rates on your cards and loans.
• Do you have one or more credit cards that have been maxed out? Even reaching your max credit limit on just one card can hurt your debt to available credit ratio, an important factor in determining your credit score.

Avoiding Bad Credit Counseling Agencies

When you're finally ready to commit credit counseling, you're next step is finding the right service. While we highly recommend using our free matching service to find your credit counseling agency, we understand that some people might want to check things out on their own. In any case, here are some bad signs to watch out for credit counseling agencies:

• Like just about any type of company, look out for anyone advertising outrageous or impossible claims. Credit counseling can be a great way to tackle your debt problem, but don't believe anyone who claims to be a debt miracle worker.
• Charging up front fees for service is another questionable sign of a credit counseling agency. No financial company should charge you for anything until they have begun the service they've promised.
• If you're at all unsure about working with a particular credit counseling agency, try contacting them first. If it is a legitimate operation, you should have no problem talking to someone and getting information.
• Why worry about getting stuck with a phony credit counselor? Use our free matching service and you can avoid the risk all together! Every credit counselor in our network is 100% legitimate and we're confident they can improve your financial situation quickly!