Hiring a credit counselor to help you with your financial situation is the first step back onto the road to financial freedom. By realizing you need some additional help when it comes to your finances, you are taking a proactive step that will ultimately change the course of your life, hopefully in a very good way.
If you are thinking about hiring a credit-counseling agency to help you with your finances then you need to make sure you are hiring one that is competent and qualified. Asking questions relevant to experience, training and licensing can help you determine whether or not a credit counselor is right for you.
However there is more to consider than simply the credit counselor, you need to evaluate the money aspects that are going to be associated with hiring a credit counselor or credit-counseling agency. Here are some questions you should ask before you hire someone who will ultimately be in control of your finances.
- What services do you provide and what are the costs associated with them?
- What is the process for debt repayment? How do you figure out the amount I would owe for repayment?
- What if the amount for repayment is something that I cannot afford? Is there a way to negotiate repayment amounts?
- Do you contact my creditors directly? Are you able to get them to lower payments and interest rates?
- If I go on a debt repayment plan, how will I know if my creditors have received my payments on time?
- What if for some reason, say a medical emergency comes up, and I am unable to afford my payments or make them to the creditor on time?
- Will you keep me in constant contact with my accounts and what is going on with my balances?
- Will I only get written reports about my accounts or is there a way I can get them via email or on my phone?
- With a debt repayment plan what debts are going to be included? Which of debts aren’t included with the plan?
- If creditors have problems with my account, do they contact you or do they contact me?
- Am I responsible for paying all of the debts or will you be paying some? If you are paying a portion, what kind of interest rates do you charge me?
- How secure is the information I provide to you? Do you have measures set that will protect my information? Is my information safe with you?
- What information do you report to credit bureaus? Is my information safe with the credit bureaus you report to?
- Is a debt repayment plan a good option for me? Are there other options I should consider?
- Is there anything else I should know? What am I getting myself into?
Don’t be afraid to ask questions, as the answers will provide you with the information you need to decide if a credit counseling program is going to be right for you.