Find Free Credit Counseling In Your Town

With so many Americans suffering suddenly with credit trouble, there are plenty of companies springing up to provide credit counseling – for a nice fee. Trouble is, if you’re having financial trouble, why pay fees on top of that, instead of putting your money to work paying down debt? You can find free credit counseling in your area if you know how to cut through the advertising clutter and find the right companies to work with.

The first thing you should look for is whether the credit counseling agency is non profit. This just means they aren’t out to make as much money as possible in any way possible, and also that their financial records are open to the public. This is not a guarantee of quality though, nor does it mean you will get free credit counseling from this agency. It just means they have different financial operation guidelines than a for profit business.

In fact, since being “not for profit” credit counseling has become the key thing debtors are looking for, many fly by night credit scammers started up nonprofit companies. It’s pretty easy to do, and allows them to adverse that they are “non profit”, except that they are still going to rip you off. Non profit credit card consolidation services are not necessarily going to be free, as a result.

Here are a couple things to look for when looking for free credit counseling. There is one national agency, Consumer Credit Counseling Services, known as CCCS, which has branches in most American cities. You can find them in your local phone directory or by searching online. However you need to still be careful, as the name “Consumer Credit Counseling Services” has also been co-opted by scammers or other agencies, so that they have named their companies things like Consumer Credit Counseling Services Agency” or what have you. This is to make you think you are dealing with CCCS, when you really are not. Be sure to ask when you contact them whether they are members of the national CCCS or not.

Another way to find an agency is to go to the National Association of Credit Counselors website. They are a national membership organization and have attempted to set standards that legitimate companies follow. However again, there is no guarantee of free services, just that the company you are dealing with has an added layer of professional services.

A third way to find a legitimate credit counseling agency is to check with the U.S. Bankruptcy Courts. As part of filing for bankruptcy, today debtors must first go through credit counseling with an approved agency. You can bet that the agencies approved by the Bankruptcy Courts are going to be legitimate. You can find a list of agencies in your area by going to their website at the U.S. Justice Department’s website listing of approved providers.

Usually, the way a counseling agency can offer free credit counseling is because they get a portion of payments paid to them when you pay your creditors. This way, their clients do not have to come out of pocket and pay extra cash on top of an already difficult financial situation. Don’t be afraid to ask right up front whether services are free or not. Be ready though for a less than honest company to tell you “yes”, only to find when they get you in the door that in reality there are fees and costs you will have to pay. Do not hesitate to walk out, and even report them to your state’s Attorney General’s office.

The one way you are assured of getting free counseling is to do your own credit repair program. It’s not that difficult, although it does take time and patience. Remember however that using an agency means you will have to make appointments, travel to their offices, sit through classes and so on. If you do not intend to file for bankruptcy at this point, you could make an attempt to work out payment plans on your own with your creditors. This is an option you always have, and it’s the guaranteed free credit counseling option as well.