Every year, I meet with hundreds of people who come to Catholic Charities Budget Counseling seeking help with financial issues. The majority of them learn about this type of service through TV commercials. Unfortunately, many of these companies are not looking out for the best interests of the individual. So, who do you trust? Here are some tips to consider:
• Use a reputable organization. There are two organizations that can guide you: National Foundation for Credit Counseling (www.nfcc.org) and Association of Independent Credit Counseling Agencies (www.aiccca.org). You can have confidence in an agency that is a member of either organization.
• Check on accessibility. Many agencies with TV ads may have a toll-free number to sign up, but a long distance number to use once you’re on a plan. I’ve heard many complaints about being able to talk with someone after the initial sign-up. Many people also feel more comfortable speaking with their counselor face-to-face.
• Read the small print. I’ve seen some people who would literally be giving control of their bank account to an agency. Some contracts state the first two payments will stay with the agency to cover “fees.” Know the terms of the deal before you agree. Remember, they won’t always tell you what the small print states.
• Look at the big picture. A good agency will consider your overall income, expenses, and debt and how that will play out. They will offer budget counseling to make sure you are successful with repayment and they won’t just give you a monthly payment amount and let you figure out the rest.
• Seek education. A reputable agency will offer a variety of educational tools, classes, workshops, etc. These opportunities can help you learn about financial topics so that you don’t find yourself repeating your present situation. |
So please do the homework. Call the Better Business Bureau or your state’s Department of Financial Institutions to see if there have been any complaints or other issues with an agency. Remember, a reputable agency will be happy to answer your questions without feeling threatened. Don’t trust your family finances to someone you don’t know without knowing everything you can about them.