Debt Consolidation -- Choose Your Credit Counselor Carefully

Recently passed by Congress, the Bankruptcy Maltreatment Prevention and Consumer Protection Act of 2005 will necessitate people who are filing for bankruptcy to first experience compulsory credit counseling.
This is probably not a bad idea; after all, many people with problem debt could probably profit from credit counseling. A good credit counsellor can help clients with problem debts in establishing a repayment schedule, creating a personal budget, and learning how to avoid debt and credit problems in the future.
The problem is that with the estimated 1 and a one-half million further people seeking credit counseling each year, there will undoubtedly be more than credit "counselors" entering the market, and many of them are only interested in reaping huge net income at the disbursal of their clients. There are already a number of credit counseling firms working in the marketplace that publicize themselves as "nonprofit", when they actually are closely tied to for-profit debt consolidation firms. These agencies will strongly encourage their clients to consolidate debt through their spouse company, and the consequence may be a long term loan for the client that doesn't assist them at all, but reaps huge net income for the consolidation firm. How can person who is genuinely seeking legitimate, helpful credit counseling take a counseling agency wisely?
*Counselors should listen. If they begin pitching a solution to you during the first 15 proceedings you are there, you should be suspicious. A credit counsellor should be assemblage information about you in order to determine how best to assist you. They can’t possibly cognize how to assist if they don’t understand your problem. Unless, of course, they don’t care about your problem and only desire to sell generic “solutions.”
*Watch out for firms that privation excessive fees up front. Be particularly wary of non-profit-making agencies that inquire for fees Oregon “voluntary contributions” or non-profit-making agencies that state you that they cannot aid you if you make not pay a fee upfront.
*Sometimes, bankruptcy is unavoidable. Watch out if the agency doesn’t reference bankruptcy at all, or if they change the subject if you convey up the topic. Debt consoldators cannot do any money on bankruptcy cases, but sometimes, that’s your lone option.
*Shop around. Talk to respective different agencies and compare what they state you. Any agency that differs dramatically from what the other agencies are telling you should probably be avoided.
*Check with your local Better Business Bureau, and inquire if they’ve had any ailments about the agency.
*Watch out for firms that offer quick solutions to your problems. You didn’t get into financial problem overnight, and you won’t get out of financial problem overnight. Any competent debt or credit counsellor will cognize this and will undoubtedly state you that working your manner out of debt takes time.
*See if the agency belongs to the National Foundation for Credit Counseling or Association of Mugwump Consumer Credit Counseling Agencies. Many do.
By taking a few simple safeguards before agreeing to work with a credit counselor, you may salvage yourself a batch of heartache and a batch of money later.