Free debt counseling would be great if you could find it!
Are you feeling the stress? At the end of your rope? It may be time for some debt counseling. But I doubt if you will find it for free. Before you go this route, make sure that you already tried to fix the problem yourself!
Just keep this one thought. There are a lot of vultures out there. And they only have one goal in mind. To get as much of your money as possible. They could even end up making your situation worse! So with that in mind lets look at what you could gain, what it will cost, and what you should be on the lookout for.
First, they will basically do what you should have done. They will make some phone calls and try to get some help from your creditors. They may be able to get reduced rates, or eliminate interest totally, lower monthly payments, relief from debt collectors, and a one stop payment plan for you.
The cost varies, but you need to know up front what all of the fees are. They vary a lot, but you may have to pay an initial interview fee, application fee, and then a monthly fee. And it is easy to hide fees, so beware.
Check them out before you talk with them. Check with the Better Business Bureau, The Association of Independent Consumer Credit Counseling Agencies (AICCCA), and the National Foundation For Credit Counseling.
If they don’t want to spend a lot of time with you, run for the hills. That is a sure sign that they are out to get your money. Make sure that that have an easy to read contract with all of the terms and fees listed. Make sure that you understand them all.
I don’t want to completely scare you. I just want you to be cautious. You are going to have to find out how much they can save you, how fast they can get you out of debt, and is it worth the cost.
And lastly, don’t be fooled by words. You may see the word “free” thrown around, but try to see the big picture. Something may be free, but not everything. Another favorite is “nonprofit”. Sounds tempting, but it doesn’t really mean anything to you.
So if you end up considering debt counseling just remember that as with anything else, it is “Buyer Beware”.