You’re knee deep in debt. You’ve tried budgeting, meeting with your creditors and other self-help methods of controlling your debt, and it also just hasn’t done any good. Don’t quit! Don’t worry! Give credit advice or debt management an attempt before you approach filing for bankruptcy.

What is Credit Counseling?

Reputable consumer credit counseling services will do these tasks:

• Advise you on managing your money and debt
• Help you develop a budget
• Offer free educational materials and workshops

Credit counselors are certified and capable in the parts of credit score, money and managing debt and budgeting. Counselors will discuss your complete financial situation and can help you develop a personalized plan to solve your money problems.

Choosing a Credit Counseling Organization

Most credit counselors offer their services through local offices, online or on the telephone. If at all possible, you ought to seek one that offers in-person counseling. You ought to develop an index of reputable credit guidance organizations and ascertain that they provide you free information brochures about their services. The subsequent organizations often offer credit counseling services:

• Colleges and universities
• Military bases
• Credit unions
• Housing authorities
• County or cooperative extension services

Your financial institution, local consumer protection agency, church, relatives and buddies can be an excellent source of information and referrals. The US (Bankruptcy) Trustee Program has a list of approved credit counseling agencies in your area. Each state’s Attorney General’s office, local consumer protection agency and Better Business Bureau can give a list of any complaints filed against the agencies on your list.

Be wary! Many credit advice organizations are nonprofitand give their services free of charge or for just a modest fee. However, there exist for-profit credit counselors that may charge a high fee as well as others that will bill themselves as “nonprofit” and “free” but require you make an upfront “donation” or “voluntary” contribution.

Questions to Ask

Once you have narrowed your list of credit counseling agencies, contact your final candidates and ask:

• What services do you provide? You want budget counseling and debt management classes, not debt management plans discussed below
• Will you help me avoid debt problems in the future?
• What are your fees? Are there any upfront or monthly fees? Get it in writing
• What if I can’t afford your fees?
• Will I have a formal written agreement or contract with you? Always read what you sign
• Are you licensed by the state?
• What are your counselors’ qualifications? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained? Avoid agencies that train or certify their own counselors
• How will you keep my personal information private?
• How do you compensate your employees? Avoid any agency that pays their employees based on whether they sign you up, pay a fee or make a contribution

Debt Negotiation Programs

Stay clear of credit counseling agencies that promote debt negotiation services! They’re extremely risky and may have a negative impact on your credit report. Many claim to be nonprofit organizations and:

• Guarantee that they can reduce or remove your unsecured debt
• Require substantial monthly fees
• Demand payment of a percentage of savings
• Tell you to stop making payments or communicating with creditors
• Require you to make monthly payments to them, rather than to your creditors
• Claim creditors won’t sue you for nonpayment of unsecured debt
• Promise that using their system won’t have negative impact on your credit report
• Claim that they can remove accurate negative information from your credit report

For help with a Macon GA chapter 13 bankruptcy , contact a Macon GA bankruptcy lawyer. A bankruptcy attorney Macon Georgia could give you the help you need.