Selecting A Credit Counselor; Asking The Right Questions.

Home
>
Debt Relief
>
Selecting A Credit Counselor; Asking The Right Questions.

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.

In The News:

Yahoo! News: Top Stories

Obama announces Clinton, Gates for Cabinet (AP)

AP - President-elect Barack Obama picked a national security team headed by former campaign rival Hillary Rodham Clinton and Bush administration holdover Robert Gates on Monday, and said he wants to consult with military commanders before settling on a firm timetable to withdraw U.S. combat troops from Iraq.

Panel says US has been in recession since Dec. '07 (AP)

AP - The U.S. economy has been in a recession since December 2007, the National Bureau of Economic Research said Monday. The NBER a private, nonprofit research organization said its group of academic economists who determine business cycles met and decided that the U.S. recession began last December.

Obama still looks for Iraq pullout in 16 months (AP)

AP - Barack Obama says the U.S.-Iraq security agreement approved by Iraq's parliament puts the U.S. on a "glide path" toward reducing forces there.

Bernanke: further interest-rate cuts 'feasible' (AP)

AP - Federal Reserve Chairman Ben Bernanke said Monday that further interest-rate cuts are "certainly feasible," but he warned there are limits to how much such action would revive an economy likely to stay weak well into next year.

2 injured in shooting at suburban Miami mall (AP)

AP - One person was shot at a suburban Miami mall Monday and taken to a hospital by helicopter, and another person was injured, authorities said.

Retailers offer deals, discounts on 'Cyber Monday' (AP)

AP - Retailers who saw Thanksgiving holiday sales drop off as the weekend progressed stepped up online promotions on the day known as "Cyber Monday" to try to get consumers tired of the crowds at stores to keep shopping.

India demands strong action from Pakistan (AP)

AP - India demanded Monday that Pakistan take "strong action" against those behind the deadly Mumbai attacks, and Washington pressured Islamabad to cooperate with the investigation.

Sending spam in Israel could mean a big fine (AP)

AP - Israel has gotten fed up with spam. Anyone who sends out messages without receiving the recipient's consent can now be slapped with a big fine.

Tina Fey's husband talks about her facial scar (AP)

AP - Tina Fey's husband is talking about something the "30 Rock" actress would rather not discuss: the scar on her left cheek.

Police investigating NYC hospital that treated Giants' Burress (AP)

AP - Plaxico Burress was led out of a police precinct in handcuffs Monday after surrendering on a weapons possession charge, and authorities said that teammate Antonio Pierce is being investigated over his role in an accidental shooting at a Manhattan nightclub.

Obama names Clinton, Gates to lead foreign policy (Reuters)

Reuters - U.S. President-elect Barack Obama named former rival Hillary Clinton as secretary of state on Monday and said Robert Gates would remain defense secretary in a national security team charged with recasting America's leadership role in the world.

Stocks slide as Bernanke confirms economic stress (Reuters)

Reuters - Stocks tumbled on Monday as economic reports showing further evidence of the worsening global economic climate were backed up in comments from Federal Reserve Chairman Ben Bernanke.

India demands Pakistan act decisively on Mumbai attack (Reuters)

Reuters - India demanded Pakistan take decisive action over deadly attacks in Mumbai it said were carried out by militants from its nuclear-armed rival, while the West urged cooperation to ease tension.

Bush calls flawed Iraq intelligence biggest regret (Reuters)

Reuters - President George W. Bush said the biggest regret of his presidency was flawed intelligence that Iraq had weapons of mass destruction and told ABC "World News" in an interview airing on Monday that he was unprepared for war when he took office.

U.S. in recession as Europe debates spending hikes (Reuters)

Reuters - The U.S. economy has slumped into a recession, the nation's business cycle arbiter declared on Monday, while European leaders clashed over how much public money to spend tackling a deepening downturn.

House to push $500 billion stimulus bill (Reuters)

Reuters - U.S. House of Representatives Speaker Nancy Pelosi met leading governors on Monday to discuss the size and shape of an economic stimulus package that one Democratic aide said was likely to cost around $500 billion.

Thai protesters consolidate hold on airport (Reuters)

Reuters - Thai protesters prepared to end their three-month occupation of the Prime Minister's office on Monday to consolidate their grip on the main airport ahead of a court verdict that could dissolve the elected government.

Alabama mayor arrested on corruption charges (Reuters)

Reuters - Federal authorities arrested the mayor of Birmingham, Alabama, on Monday in a corruption probe surrounding a massive sewer bond debt that has forced Jefferson County to the brink of bankruptcy.

Hawkish Obama names Clinton as top diplomat (AFP)

AFP - Barack Obama on Monday nominated Hillary Clinton to be his "tough," "smart" secretary of state and his former foe vowed to give her all to steer America through a perfect storm of global crises.

Mumbai attacks: India demands Pakistan take 'strong action' (AFP)

AFP - India on Monday formally accused "elements" in Pakistan of being behind the devastating Islamic militant attacks in Mumbai and demanded that Islamabad take "strong action".

Selecting A Credit Counselor; Asking The Right Questions.

Debt Relief Debt Relief