Credit Counseling Services - 3 Major Warning Signs

Taking advantage of credit counseling services is one of the best ways to avoid years of high interest payments on credit cards and other debts. Credit counseling services can even help you avoid bankruptcy. Used correctly, these services are wonderful alternatives for people who find themselves mired in debt that has taken over their lives. However, as with any business field, there are some bad apples in the credit counseling services industry. To avoid them, here are a few warning signs to watch for as you search for the right credit counseling services company.

First, if a credit counseling services specialist will not meet with you during the initial consultation for a minimum of one hour, then keep looking. Your situation is unique and you deserve the attention needed to formulate a working solution to your specific difficulty. Credit counseling services that only make a few minutes available for this crucial meeting probably provide poor service. Essentially, these kinds of credit counseling services view clients as numbers, not people. That’s the last thing you need at such a time.

Next, there’s no reason why any of the credit counseling services in business today should be charging more than $100 to set you up in one of their debt management programs. Credit counseling services that are charging beyond that amount are probably providing poor service on the back end. They’re looking to make their money up front, then giving your situation scant attention beyond the initial contacts and workups. Look for companies that charge $50-$100 for their creditor negotiation and related services. It’s more likely that they’re looking to legitimately build longer term relationships with their clients.

Finally, avoid any of the credit counseling services you encounter that want to take your money without a written contract that specifically details everything they will do on your behalf. There are disreputable credit counseling companies out there that prey on vulnerable people who already feel perplexed and anxious about their financial problems. Keep your mind focused on what’s at stake and make discerning choices. Always get the full details in writing for your own protection.