Does Debt Counseling Deliver?

Filed in archive Debt Consolidation on June 8, 2010

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There are many advertisements going around about debt counseling services. Many of these are for scams of various types and really will not help you accomplish what you need to do. Here is a brief overview of debt counseling services and how you can avoid phony agencies that are out to separate you from your money.

The Consumer Affairs Website provides some excellent tips about choosing a consumer credit counseling service if you should ever need one. The first thing it advises is to not use any debt credit counseling service that sends you an ad or contacts you by phone or spam.

They also advise that you should use an agency that is a member of the National Foundation of Credit Counseling (NFCC). This agency has been around for 50 years and is very strict about its members.

Consumer Affairs also suggests that you should not have to pay more than $20. More than this indicates it may be a scam, or that you are paying more than you need to. "Reputable agencies," they say, "do not keep the first month's payment, demand a contribution or charge high fees."