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Find a Reputable Credit Counselor

If you need help managing your debt, reputable help is available, but you've got to do your homework if you want to avoid scams and anti-consumer practices. Here's a list of qualities a legitimate credit counseling service should offer:

Free information:

the agency should be willing to provide free information about their services, without requiring payment or any personal financial information.

Wide range of services:

Organizations that are truly invested in helping you manage your debt should offer you a variety of services. In addition to discussing your payment options, they should offer classes on budgeting, money management, banking and the like. Financial literacy lessons are a key part of most successful credit programs; be wary of any organization that doesn't offer them.

Trained counselors:

Financial literacy lessons are only as good as their teachers. Ask how an organization's counselors are trained and how often they renew their training.

Transparent affiliations:

Find out what types of affiliations a service has before giving them your business. Many credit counseling services are actually funded by voluntary contributions from the credit card industry. Your best bet might be to find help at a local credit union or from a non-profit consumer advocacy organization.

Written contracts:

Reputable credit counseling organizations should be able to provide you with a written contract and copy of your payment plan. Read it, and any other documents, thoroughly before signing, and don't sign anything you don't understand.

Customer satisfaction:

Before you do business with a credit counseling service, check with your state Attorney General and your local consumer protection agency (in New York State that's the Consumer Protection Bureau), to see if anyone has logged a complaint against the organization.

For additional information on credit counseling and debt management, visit the at Federal Trade Commission's Web site.