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Extreme scrutiny should be the name your game when it comes to choosing a credit counseling company or specialist. Legitimate, quality credit counseling services provide much needed help to those who need it. But, not being vigilant about identifying the right company could cost you dearly.Before you seek out the help of a credit counseling company or specialist – make sure you ask questions – the right questions. The FTC recommends the following:
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• <!–[if !supportLists]–> <!–[endif]–>Are you licensed. What services do you offer?
• Will you help me develop a plan for avoiding problems in the future?
• <!–[endif]–>What are your fees?
• <!–[endif]–>What if I can’t afford to pay your fees?
• <!–[endif]–>What qualifications do your counselors have? Are they accredited or certified by an outside organization? What training do they receive?
• <!–[endif]–>What do you do to keep information about me (including my address, phone number, and financial information) confidential and secure?
• <!–[endif]–>How are your employees paid? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization?

What services do you offer?
Look for an organization that offers a range of services, including budget counseling, savings and debt management classes, and counselors who are trained and certified in consumer credit, money and debt management, and budgeting. Counselors should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems now and avoid others in the future. An initial counseling session typically lasts an hour, with an offer of follow-up sessions. Avoid organizations that push a debt management plan (DMP) as your only option before they spend a significant amount of time analyzing your financial situation. DMPs are not for everyone. You should sign up for a DMP only after a certified credit counselor has spent time thoroughly reviewing your financial situation, and has offered you customized advice on managing your money. If you were on a DMP with an organization that closed down, ask any credit counselor that you are considering what they can do to help you retain the benefits of your DMP. Are you licensed to offer your services in my state?
Many states require that an organization register or obtain a license before offering credit counseling, debt management plans, and similar services. Do not hire an organization that has not fulfilled the requirements for your state. Do you offer free information?
Avoid organizations that charge for information about the nature of their services. Will I have a formal written agreement or contract with you?
Don’t commit to participate in a Debt Management Plan over the telephone. Get all verbal promises in writing. Read all documents carefully before you sign them. If you are told you need to act immediately, consider finding another organization. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained?
Try to use an organization whose counselors are trained by an outside organization that is not affiliated with creditors.Have other consumers been satisfied with the service that they received?
Once you’ve identified credit counseling organizations that suit your needs, check them out with your state Attorney General, local consumer protection agency, and Better Business Bureau. These organizations can tell you if consumers have filed complaints about them. The absence of complaints doesn’t guarantee legitimacy, but complaints from other consumers may alert you to problems. What are your fees? Are there set-up and/or monthly fees?
Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote. If you’re concerned that you cannot afford to pay your fees, ask if the organization waives or reduces fees when providing counseling to consumers in your circumstances. If an organization won’t help you because you can’t afford to pay, look elsewhere for help. How are your employees paid? Are the employees or the organization paid more if I sign up for certain services, pay a fee, or make a contribution to your organization?
Employees who are counseling you to purchase certain services may receive a commission if you choose to sign up for those services. Many credit counseling organizations receive additional compensation from creditors if you enroll in a DMP. If the organization will not disclose what compensation it receives from creditors, or how employees are compensated, go elsewhere for help. What do you do to keep personal information about your clients (for example, name, address, phone number, and financial information) confidential and secure?
Credit counseling organizations handle your most sensitive financial information. The organization should have safeguards in place to protect the privacy of this information and prevent misuse. Never has there been more need for legitimate credit counseling services – free of abuse. Treat all credit counseling companies with caution – whether they are for profit or non-profit.

For a list of approved counseling agencies visit http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

To learn more about my Self Help Credit Repair Management System and how you improve your credit score in 7 Steps visit: http://www.7stepsto720.com

This may sound somewhat insane – but if you have teenage children, you should give them access to your credit accounts.

This advice is designed to help your children develop the skills they need to enter a world that judges us all on three little digits – your credit score. Learning the lesson of credit responsible and proper credit management is vital to your teen developing healthy credit and financial habits.

It can help them successfully navigate around the potential dangers of :
1)  Credit card companies that heavily solicit college kids
2)  A misunderstood credit-scoring system and
3) Poor credit and over payments on cars, rent, college and more

Read more on how to  protect your teen from making credit mistakes that could devastate their future. Call us today at 877.72.SCORE (7267) for more information on my book, Your Teens Credit.