Many people in the United States are deep in debt and find it hard to get out. Since so many people have trouble paying their bills, more and more credit counselling agencies are opening to help people get out of debt. Even though there are a lot of good credit counselling companies, there are also some that are scams and can hurt your credit even more. So you can avoid fraud, it's important to know what to look for in a good counselling company.
Look for non-profit organisations.
If you need help with your credit, you might want to look for companies that are run by nonprofits. You shouldn't use these companies as a way to get out of paying your debts. Instead, you should only use them if you have no other choice. But if you feel like you can't handle your debt, you should get help to figure out how to deal with it.
On the other hand, if you can pay off your debt on your own by taking small steps, you will learn how to manage your money well. You could, for instance, call your creditors and tell them what's going on. This means you can find out what the other person thinks about your overdue bill. Most of the time it's not what you think it is. Most creditors would rather help you pay back as much money as possible by working with you. They don't want you to go bankrupt because if you do, they'll lose all of their money.
You can also pay more on your credit cards if you want to. This might mean getting another job or selling some of your valuables, but it's a step in the right direction. But if you decide to work with a credit counselling company, you should learn as much as you can about it. Check with your local Better Business Bureau to see if any complaints have been filed. You could even send a friend to the company and have her act like she wants to work there.
Avoid Fees
If a credit counselling company wants you to pay a fee before they start helping you, that's a red flag that they might be a scam. Even though a small fee might be fine, a company that charges too much may cost you more money in the long run and cancel out any savings you might get from combining your debts. Don't forget that you want to pay off your debt, not add more costs to it. If the prices don't seem fair, you might want to ask your friends what they think.
False Advertising
If you want to find a credit counselling company, you should stay away from those that promise to fix your credit quickly. You probably took a long time to get into debt, and there is no programme that can help you get out of debt overnight. If the company says it can wipe out your debt or fix your credit history with a wave of a magic wand, without you having to do anything, it's likely a scam. Most of the time, the things they do to try to fix your credit may be against the law and do more harm than good.
Emails no one asked for
If you need credit counselling, you should look for a company on your own. Many people get emails that they didn't ask for that offer credit counselling. Most of the time, these are scams. It's fine if you call a business and then they call you back. But companies that find you are usually ones you should stay away from.
Credit counselling is a good way to get your debt under control, especially if you are close to filing for bankruptcy. This may be a better solution than going to a counselling company if there are things you can do to help yourself get out of debt. If you do need credit counselling, check out the company to make sure they are legit. Remember that if you choose the wrong company, you could end up with more debt.
