As much as you’d like help dealing with your debt, it can be a tricky subject to bring up with the people in your life. Plus, family members and friends all have different levels of experience and opinions when it comes how to handle debt — so it’s not always easy to get a straight answer or decide how to proceed based on anecdotal evidence alone.
Talking to a consumer credit counselor, on the other hand, is the start of a relationship through which you can get professional, personalized advice based on your exact financial situation. Since most people have no personal affiliation with their credit counselors, they often feel much more comfortable being completely forthcoming about their income, debts and financial goals. This transparency is key to figuring out how to best defeat debt.
Want to make the most of consumer credit counseling? Follow these tips on choosing the right counselor for you so you can get the most from your meeting.
Choose a Representative from a Reputable Agency
Step one is ensuring you work with a reputable agency. Unfortunately, even some non-profit organizations are first and foremost out to collect fees from enrollees — often by pressuring them to sign up for a payment plan through the agency without providing enough information to make an informed decision.
One solid way to vet a credit counseling agency is running an internet search to see what kind of successes others have had with the service. Once you’ve made a list of candidates you’re considering, use this method to investigate them one by one — and steer clear of any organizations that have amassed serious consumer complaints.
Another way to go about evaluating potential credit counseling partners is working with organizations accredited by the National Foundation for Credit Counseling. These firms must undergo and pass third-party accreditation by upholding certain standards and best practices.
Ask About Their Services and Credentials
The best consumer credit counseling companies are completely up-front about how they do business, what services they can provide and how they can or cannot help you meet your financial goals. Some even offer debt management services, which is a form of credit card consolidation. So, the best way to find out this information is simply to ask.
Before you pick up the phone, make a list of questions that’ll help you determine whether a specific counselor and/or agency is a good fit for you. Here are some suggestions on what to say during the initial consultation from NerdWallet:
- What is your experience as a counselor? What are your qualifications?
- What approach do you take to working with clients?
- How can you help me meet my specific financial goals?
- If I do decide to sign up for debt management through your agency, how much can I expect it to cost?
While finding a reputable agency in line with your needs is important, you’re also hunting for the right individual credit counselor. During the first consultation, try to get a feel for their communication style. Think of this as the first step in a long-term relationship, rather than a one-off meeting. You want someone with whom you have a sense of rapport and trust. Look out for any red flags during this first call, like condescension or pushiness to get you signed up in a debt management program.
Choosing the right consumer credit counselor for you means you’ll be working with a legitimate, qualified professional with whom you can communicate openly about your debts — and come up with a workable plan to eliminate them.