What is credit counseling?
Credit counseling is free or low-cost help from a nonprofit. Certified counselors can talk to you about your money problems and help you make a plan.
How they can help?
A counselor can:
- Explain your options for dealing with debt,
- Work with creditors to lower interest rates and fees,
- Help stop collection calls, and
- Teach you ways to build strong money habits.
How to find a counselor
You can start with:
- National Foundation for Credit Counseling,
- Financial Counseling Association of America, or
- The US Department of Justice's list of approved credit counselors.
Tips for choosing a good service
- They should be willing to give you free information about their services before asking about your debt.
- They should offer a range of help, not just debt management plans.
- Avoid places that push you into a debt management plan without first understanding your full situation.
Questions to ask a credit counseling service
- What services do you offer besides debt management plans?
- How do you provide counseling — in-person, by phone, online?
- Do you offer free educational materials?
- What are your fees? Can I get them in writing?
- What if I can't afford the fees — will you still work with me?
- What are the counselors' qualifications?
- How are your employees paid? (Be cautious if they get paid more if they sell services).