Getting Debt Help: Choosing a Credit Counselor

The National Foundation for Credit Counseling's (NFCC) 2008 Survey of Financial Literacy estimates that 15 million, or about 7% of adults, are struggling with collection calls and/or are considering filing bankruptcy. Adding to consumers' worries are scam artists promising miracles: "Fix your credit report!" "Erase bad credit!" "Get rid of your debts today!" The only way to "fix" your credit report is to repay your debts and use credit carefully. Although it's possible to eliminate consumer debt, this is typically done by filing bankruptcy, which can appear on your credit report for up to ten years.

Bad Credit: Don't Forget the Most Important Thing

What can you do? You're barely keeping your financial nose above water, and don't want to file bankruptcy. A reputable credit counseling agency can provide debt help, and assist in avoiding bankruptcy or foreclosure. In some cases, credit counselors may negotiate lower balances, eliminate or lower finance charges, and help you establish an ongoing debt management program.

Unfortunately, there are scammers posing as credit counseling professionals. They may take your money and promptly disappear, or charge exorbitant fees and promise to help while providing little or no service. Here's how to find a credit counseling agency.

• The National Foundation for Credit Counseling offers online and phone referrals to its network of certified credit counselors. NFCC certified credit counselors have passed rigorous training and testing programs to qualify for certification.
• The US Department of Housing and Urban Development also provides referrals to approved housing counseling agencies. These agencies assist consumers with credit problems and/or are facing foreclosure.

Before Contacting a Credit Counselor

When contacting a credit counselor, it's good to have some basic information ready, along with a pencil and paper:

• Gather your most current bills and keep them handy when you call or visit your credit counselor:
• On each bill, highlight the balance owed, the APR, and the creditor's contact information for each account. This will help you provide correct information to the credit counselor.
• Make copies of the two most recent pay stubs or payroll direct deposit advices for you and your spouse/partner. Be ready to provide any requested information.

It can be uncomfortable discussing your financial information with strangers. Don't use this as an excuse for not getting help! The most important thing you can do is to get debt help today.

Sources:

• Foundation for Credit Counseling (NFCC)
• HUD Approved Housing Counseling Agencies

About the Author:
Karen Lawson started writing stories about birds and surfing at an early age. For more than ten years, she enjoyed a productive corporate career in mortgage banking before moving to Reno, Nevada in 1997. Karen earned BA and MA degrees in English (specializing in writing) at the University of Nevada. Significant areas of research and writing include truth and ethics in creative nonfiction, medical humanities, and the symbolism and lore of birds in American literature and culture. Karen has taught English at a community college, is writing a collection of poetry, and enjoys birdwatching and walking her basset hounds.