13 Questions to Ask Before Committing to a Consumer Credit Counseling Service
Some of Debt Shield’s clients were formerly enrolled in consumer credit counseling programs. They are seeking credit card debt relief after paying hundreds of dollars every month to a debt management company, which in turn made payments to their creditors for them. Some statistics show that the majority of consumer credit counseling clients quit or are kicked out of their program before they are debt free. When consumer credit counseling does fail, it costs these clients a great deal of money for very little gain.
Sometimes consumer credit counseling agencies do not fully disclose if they receive part of their funding from creditors – the same creditors you are struggling to appease. The agencies that do are subject to all of the rules of the banks in order to qualify for this funding. They might not tell you that if you can’t make any payment in full and on time, you could be kicked out of their program.
Knowledge is power, especially when you are in debt. Learn the most you can about any debt relief option before you commit. Here are good questions to ask before committing to a consumer credit counseling agency:
13 Questions to Ask Credit Counseling Agencies When Evaluating their Services:
- Will the agency refund fees if the services rendered are not satisfactory?
- How much training do counselors at the agency receive?
- Is the agency accredited by a trade association, such as the National Federation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCA)?
- Do I have to make two payments up front in order to stay current?
- Does the agency have an independent board of directors?
- Does the agency keep clients' funds in a trust account, separate from its operating funds?
- How long has the consumer credit counseling agency been in business?
- What types of services does the agency offer?
- How long will it take to complete a debt-management program?
- What effect will working with a credit counselor have on a credit rating?
- Are agency services confidential?
- If I cannot make all payments in full and on time, will I get kicked out of your program?
- Will I be subject to any late fees?
If you have any question about debt settlement or Debt Shield’s debt negotiation and settlement program, contact a professional debt consultant today for your personalized debt analysis.
