Debt counselors, credit help | Christian Finance, Success, Earn Money, Insurance, Save Money, Debt Help

Debt counselors can help but Please be careful

Posted on Wednesday, 3rd February 2010 by jkibler

Debt counselors Read this and quickly learn what to watch out for when using credit counselors so no one steals your money.

A credit counselor offers an important service to consumers who are swamped with debt.

People who are having a difficult time maintaining the credit card payments and their car payments and their mortgage and putting their kids through college and buying food and clothes may need this help.

What the counselor will do is negotiate with credit card companies sometimes lowering your balance and interest rate to create a lower payment and enable you to get your credit cards paid off.

Unfortunately, many people who present themselves as credit counselors are doing so to enable themselves to steal your money.

Red flags.

Big upfront fees

Many times a credit counselor will charge a $10 setup fee. This is just to get your account activated and pay someone to do the paperwork. If they are asking for a big fee upfront they may not be legitimate.

Unrealistic promises.

Here is the old rule, if it sounds too good to be true it probably is.

Any company who promises you to cancel your debts for little or no money without harming your credit rating is not being truthful. Any legitimate credit service will help you pay back what you awe even if it is at a lower interest rate and a lower balance.

No accreditation.

A legitimate counseling firm is going to be affiliated with the national foundation for credit counseling or the Association of Independent consumer credit counseling agencies or other reputable organizations and will be on their list of members. It is up to you to check the list.

Missing payments.

Many of these firms will want you to send payments to them and they in turn will forward it to the credit card companies. I never recommend anybody do this but if you do check with the credit card company and make sure they got the first payment and every payment after that.

Jimmy says be careful. Everybody wants to get out of debt and there are some very good ways to do it and credit counseling can be a big help.

Whoa Jimmy?

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