In times of personal financial crises the timely intervention of a credit counseling professional may mean the difference between default and a path to a better credit rating and debt-free lifestyle. Credit counseling allows individuals in deep debt to have timely assistance in order for them to slowly but surely get out of their current financial rut with a win-win solution that allows for payment of debts without having to resort to bankruptcy.
What Kind Of Credit Counseling Do You Offer?
You often find the terms “credit counseling” and “debt counseling” when approaching a professional or company just like Consumer Credit of Minnesota, that deals with managing debt. Credit counseling are professionals that just provide advice and education to manage your debt while the latter refers to those that help negotiate for the reduction of the debt.
How Can I Know You Are A Reputable Organization?
Many companies often throw around the term “nonprofit” to put a veneer of legitimacy to their cause. If you are unsure of the organization’s status you may check if they have official status under Section 501 (c)(3) of the Internal Revenue Service Code. Just go to the IRS website and then do a search for “charities”. You also have the option to look at their complete financial statements or Form 990. This information is public so there should be no issue should you request it.
How About Your Counselors? Are They Certified?
The best way to know if the counselors are trained and certified to perform credit counseling is to look for evidence of independent certification from an organization not related to the company. Check the educational level and professional credentials of the workers. They should be lawyers, certified public accountants and Certified Financial Planners or similar degree.
How Will Going This Route Affect My Credit Rating?
If you are late paying your unsecured loans it will or has already affected your credit rating. You should be looking for an organization that will give you a practical answer. Avoid those that promise to “wipe the slate clean” as even if they could it may not be legal. Best if you listen to advice that will manage your credit rating at this difficult time. Different strokes for different folks and credit counselors should be able to provide you with different means to achieve the same goal.