Debt Consolidation - How To Choose Your Credit Counselor
Every different bad debt situation demands a different solution, and there is no one-glove-fits-all solution. Depending on your financial condition and the severity of your bad debt, a solution has to be designed for you. With a number of solutions possible, it is best you go for a debt consolidation credit counseling.
Credit counseling is also mandatory, under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, if you are thinking of filing for bankruptcy. A credit counselor does not necessarily advise debt consolidation straight away. He assists you with your problems by helping in planning repayment schedules, helping create a viable budget, and advising you on how to avoid debt and credit problems in future.
Selecting A Credit Counselor
There are an endless number of credit counseling services and not all of them are scrupulous as they are interested only in making money for themselves. Styling themselves as non-profit, some have direct links with debt consolidation companies, and would urge you to go for debt consolidation through their associate companies .
You could land up with a loan that is not helpful to you at all. You need to choose your credit counselor with care. Check with the Better Business Bureau (BBB) before doing anything else, to ensure there are no complaints against the company. Then check to see if the company is registered either with the National Foundation for Credit Counseling, or Association of Independent Consumer Credit Counseling Agencies, or both.
Shop around and compare the services provided by the various credit counselors. A good credit counselor gathers all information about your debt to determine the best course of action for you. Be wary of counselors who ask fees upfront that seem to be excessive. There are no quick solutions and a competent credit counselor will tell you to work your way out of your bad debt.
Debt Consolidation Links-
