Tips to Choose the Best Credit Counseling Service

Tips to Choose the Best Credit Counseling Service

People in dire financial circumstances have the option of approaching a good credit counseling service for help. There are many instances in which people find a solution to their problems with the help of these service providers.
WealthHow Staff
Many people often wonder about why they should make use of credit counseling services. The answer to that is not a simple one, but it should suffice to say that by doing so, one can save their financial standing from deteriorating completely. There are hundreds of such services out there today, and admittedly, they are not all up to the mark. Most of them will offer you no help at all, and just tell you things that you already know.

But if you do your research well and make use of a counseling service that is reputed and experienced, you will find many solutions to your credit problems. One of the biggest problems facing the residents of the United States today is their over-dependence on credit cards and other credit tools. Sooner or later this causes a great credit burden on the individual. With the allure of paying tomorrow for what you need today, many people tend to overspend and live beyond their means, thus finding themselves in a tricky situation with their credit debt.

When this happens in a large degree, the only possible solution that remains for the individual is to declare bankruptcy. This is detrimental for the individual because bankruptcy is a permanent blemish on his/her credit report and credit history, and it is also harmful to the creditor/lender because they have to write off the indebted amount.

Understanding what these counseling services do, will give you a better idea about their mode of operations as well. Their primary aim is to provide you with all the financial advice and guidance that your situation requires. They will teach you all about financial management, and about how you should be handling your accounts and your bills.

Adhering to their advice will aid you immensely. Secondly, they try and negotiate a deal with your creditors. They try and convince them of your inability to repay the debts completely, and show them that it is better to get reduced or late repayments from you, rather than get nothing at all. And if you are declared bankrupt, they will get absolutely nothing. So the creditor decides to write off a part of their indebted amount, and this gives you some leeway, and sets you on the path of credit repair.

Now this should help you understand why you must go to a reputed credit counseling service provider. Negotiating with creditors requires some standing in the market, and some kind of relationship with them too. This is something only the best counselors will have. A lesser service provider will be unable to negotiate successfully with the creditors.

You may see advertisements of free credit counseling services in many places, and it is best to stay away from these. Someone who is charging you some amount for their work is bound to provide you with better service, and hence you should opt for one of the non-profit counseling services instead. They will charge a fee from you, but if they can resolve your situation, this fee will be completely worth it.

Best Credit Counseling Agencies

You must ensure that it is a part of either the National Foundation for Credit Counseling (NFCC) or the Association of Independent Consumer Credit Counseling Agencies (AICCCA). Going to a service based on the reviews or recommendations of someone you know is always the best option. Here are some of the best consolidated credit counseling services for you.
  • ACCC Consumer Credit
  • Auriton Solutions
  • CareOne Providers
  • Clean Credit Clinic
  • CuraDebt
  • Delray Credit Counseling
  • GreenPath
  • Impact Debt Relief
  • Money Management International
  • Take Charge America
You must remember that these services are not for everyone. These services will be useful to you only if your debt problem is greatly out of hand, and there is no option for you but bankruptcy.

Make your choice carefully, and read as many reviews as you can about these services before you approach them. Learn to handle your finances more effectively in the future, and you will not face such a problem again.