People who live paycheck to paycheck worry about the overdue bills and other debt collectors. They might also be unaware of developing a good budget which leads to taking the services of a credit counseling firm. Credit Counseling Organizations that are not for profit organization helping you find the best solution for your financial problems.

What to Expect?

• Provide Money Management Tips and Advice
• Help you prepare a workable budget
• Free Educational tools and workshops

In the initial stages, the counselor would check your income, assets, and expenses and accordingly makes a financial plan.

How to Select?

You should take it as a red flag when a company asks you to pay to send details about the company even if before asking about your situation. Do not take services who claim their services to be an alternative to bankruptcy. You can also check with the following agencies about the legitimacy or if you require a credit counseling service.

• Better Business Bureau
• National Foundation for Credit Counseling
• United States Trustee Program

It is also important to know, why you are choosing a credit counseling company. An organization must have a full range of services from credit counseling, debt management classes etc. If a company only has the Debt Management Plan(DMP) then steer clear away from them.

Warnings

However, some not for profit organizations tend to charge high fees adding to your already mounting debts. It is important to know what you are expecting from these organizations/firms. If you are taking credit counseling services read the fine prints of Terms & Conditions. We all want freedom from our creditors, however, it is better to check if the goals of credit counseling and your goals match. Don’t get stuck in a scam and making the situation worse.