A little debt consolidation credit counseling guidance will go a long way for you. You will find the help you need to navigate the traps and pitfalls before you decide to get credit counseling. Arm yourself with education because some debt consolidation credit counseling agencies may not have your best interest at heart.

Debt Consolidation Credit Counseling for Dummies

Your first contact at a debt consolidation credit counseling agency is often a credit counselor. A good credit counselor will want to meet with you locally in person first. The counselor will provide you with customized education and what your option are before you need to make any choices. The primary service that most credit counseling agencies provide today are Debt Management Plans (DMP). With creditor approval a debtor submits a lump sum to their credit counselor as a key feature of a DMP.

Help Me Find Debt Consolidation Credit Counseling

Decent debt consolidation credit counseling can be hard to find. Check with the National Foundation for Credit Counseling (NFCA) and the Association of Independent Consumer Credit Counseling Agencies (AICCCA) for member recommendations. Don't get pressured by aggressive sales techniques. Carefully review your options and take your time before making a financial decision. You may decide that bankruptcy is a better option but remember that the current laws require that you go through approved credit counseling first.

How To Avoid Debt Consolidation Credit Counseling Scams

Beware of debt consolidation credit counseling scams. Non-profit status is often a requirement for doing business as a credit counseling agency and by no means a stamp of approval. Look into connections between non-profit credit counselors and for profit corporations or banks. Ask questions until you get all the answers you are seeking. Do not just accept one companies promotional materials as gospel. There are so many profits involved with DMPs these days that some agencies are set up to exclusively push those. Remember that a Debt Management Plan is only one option and may not be right for you.

Can Credit Counseling Show Up On My Credit Report

Review your credit report and credit score before starting a Debt Management Plan or getting credit counseling. If you are clear about your current situation that can only make working with a good credit counselor easier. Even if you decide that your situation is so dire that personal bankruptcy is your best option credit counseling is still required.

Do I Need Debt Consolidation Credit Counseling Before I File For Bankruptcy

Even if you think that bankruptcy is your best course of action you will still need to look into credit counseling. Recent changes to the federal bankruptcy laws require that you seek credit counseling at least six months before you file. Your debt consolidation credit counselor needs to be federally approved as well.

Ask around before signing on for debt consolidation credit counseling. Stay the course and dig yourself out of your debt pit. Be patient for results but take action right away. Here's to better financial days ahead.