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The Right Questions to Ask a Credit Counselor

What is Credit Counseling? Credit counseling is a consultation with a certified professional that could help you find the right debt relief solution for you.

If you feel overwhelmed by debt, a credit counselor can analyze your financial situation, help you get a clear picture of the root of your financial issues, and create a plan with a practical solution to get out of debt.

If you’re considering credit counseling, you’ll want to ask the right questions to get the most out of free credit counseling.

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So, What Should I Ask My Credit Counselor?

“Is This Service a Nonprofit?”

First, You’ll want to know if the agency you’re talking to is a nonprofit. When you work with a nonprofit credit counseling agency, you’ll have some assurance that the credit counselor has your best intentions in mind.

Credit counseling agencies that are IRS-approved 501(c)3 not-for-profit organizations adhere to different standards than their for-profit counterparts. For this reason, nonprofits can’t advertise credit improvement as a selling point, nonprofits won’t push you into taking their solution, and nonprofits will let you know if there’s an alternative option for you.

A credit counselor is an educator, advocate, and coach. They assist in reviewing your finances to determine what isn’t working and what needs to change. While credit counselors look over debts, they can also pull credit reports to check your credit health.

“Are Your Counselors and Agency Certified?”

Besides discussing goals and challenges, credit counselors will also talk about habits to help people overcome difficulties and meet personal goals. Counselors may also recommend using a debt management plan (DMP) to help repay debts if the situation warrants it.

It’s important to note that only certified credit counselors complete rigorous training to learn about debt relief options. In addition, Counselors are trained to provide unbiased counseling services. After counselors train with a mentor and pass a certification, they are qualified to provide credit counseling. Counselors must also recertify every two years and complete 16 hours of third-party training to retain their certification.

Furthermore, credit counseling agencies must be certified by a national trade association. Each trade association has a code of practice that Counselors must adhere to high ethical standards. Make sure the agency you choose is a member of either the NFCC or the FCAA.

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Learn More About Free Credit Counseling!

Credit counseling can help people explore options for debt relief and determine the best solution for their needs. DebtHelper.com is an IRS-approved 501(c)3 nonprofit Florida Corporation dedicated to its mission to educate, advise, and empower individuals to improve their personal finances. Contact us today to learn more about our services or schedule your free credit counseling consultation.

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