Choosing a Debt Counselor
Most people agree that they don’t want to spend any more money than necessary to get out of debt. To avoid costly counseling, look for a nonprofit firm. Then, check the agency’s privacy policy, being in debt still has a stigma surrounding it and you want to make sure a prospective employer (or your nosy neighbor) can’t find out. Specifically look and make sure that the agency will not sell your information.
Next, check the fees. Many debt counselors ask for a nominal enrollment fee. These are capped at $75. They may ask for a monthly fee up to $50. Some debt counselors may ask for the full amount of your monthly debt payment plus an additional percentage each month this is against IRS regulations and against state laws.
Find out what services you will receive before you enroll. Ask if they belong to any professional organizations. You should make sure whatever debt counselor you work with belongs to the National Foundation for Credit Counseling (NFCC). Also ask if they are a member of the Better Business Bureau. Make sure you understand how your funds are audited and protected.
