How should I go about choosing a credit counselor?

Choosing a credit counselor

For some consumers, credit counseling may be the best way to resolve financial problems. Here are some things to look for when choosing a credit counselor.

There are many certified, legitimate credit counselors that exist to help consumers, but there are also services to provide little help, charge very high fees, and sometimes even offer services for a fee that consumers can get on their own for free.

When you compare debt consolidation services, consider working with a counselor, but do some preliminary research before paying any money or sharing personal financial details.

Universities, credit unions, housing authorities, and military bases are examples of organizations that may offer nonprofit credit counseling programs. Banks and consumer protection agencies can also offer recommendations of reputable services in a particular area.

Some basic questions to ask:

• What services are offered?
• What free educational information is offered for free?
• What are the fees and what if I can’t afford them?
• Is there a formal contract or agreement for services?
• Is the service or professional licensed to operate in the state?
• What are the qualifications and educational background of the counselors?
• Are the counselors certified or accredited by a non-affiliated third party?