Factors to consider when choosing credit counseling service

Factors to consider when choosing credit counseling service

A credit counseling agency is a non-profit organization established purposely to assist individuals who suffer heavy debts. Numerous credit- counselling services have emerged in the market that finding a genuine one is somehow tricky. Therefore, before choosing any credit counseling agency, ensure they are registered and licensed to offer credit counseling services. Better still, you can consider the following factors:

The services they offer

Many credit counseling agencies offer services like budget counseling, debt management education, and savings. Therefore, it would help if you looked for an organization that provides a wide range of counseling services to achieve counseling in general financial areas. Diverse credit counseling is necessary for effective financial management and solves entire solve issues.

A reliable credit counselor should possess the knowledge of understanding different problems that debtors face before they start the process of debt counseling to anyone. If you come across any organization that sells debt management but can’t explain to you more about it, avoid them completely.

Find out if they are licensed

Any credit counseling agency must obtain a license from the governing state before they start conducting their services. The first thing to find out is whether the credit counseling agency has been licensed and registered by the government to certify they are qualified to carry out credit counseling duties. Any debt counseling agency that doesn’t fulfill State requirement is not acceptable.

Do they provide free counseling services?

Once you have come across debt counseling that offers free services, then it means you should pay for anything. Many debt counseling services are offering free debt counseling services. Maybe you will be required to pay some reasonable fee only you have decided to register with proposed credit solutions like a credit management plan.

Do they offer a formal written contract or agreement?

You should never register with a credit management plan that doesn’t provide any written agreement or contract. They should also have the agreement of the proposed DMP. Therefore, before you, the agreement, read the entire documents carefully to make sure the promises and terms offered by the credit counselor are correctly written.

Find out more about fees

Get the details of the fees all written and precisely determine whether the charges quoted cover the entire necessary charges. By doing this, you will avoid the possibilities of hidden charges offered by untrustworthy credit counselling services. In a situation whereby your financial status cannot fund the charges, try if you can negotiate the rates and if you are unable to reach for a reasonable fee, look for another agency.


If you are searching for reliable credit counseling services that will help you solve your financial issues, consider the factors mentioned above. Hence, you should be free to ask any question to guide you in finding a genuine debt counselling service.