5 Bankruptcy Tips: Choosing a Credit Counselor

New bankruptcy laws necessitate bankruptcy filers to seek credit counseling. But many consumer advocators say: BEWARE! While some consumer credit counselors supply a legitimate service, many are scammers, charging high fees for services you could supply for yourself.

It's important to take your credit counsellor carefully. Here are 5 simple tips that tin help:

1. Get personal -- It's always best to take person who can give you in-person counseling, rather than advice over electronic mail or the telephone. You can often happen good credit counseling aid at your local banks, colleges, credit unions, military bases, lodging authorities, and subdivisions of the U.S. Cooperative Extension Service.

2. Watch out for high fees -- Bad credit counseling services often seek to fob clients into paying high fees or "voluntary contributions" which can significantly increase their sum debt. No matter what, be certain to get a quote in authorship which names all the apparatus and monthly fees BEFORE you subscribe anything. If the fees expression too high, look somewhere else.

3. Check certificate -- Find out if the credit counsellor you're thinking about working with is licensed in your state. Look for counselors that are accredited and/or certified by a third-party organization. Brand certain the counselors don't get extra compensation for getting clients to choose into high-fee debt management services.

4. Guarantee your privateness -- Brand certain that your counseling agency have high-level safe-guards in topographic point to protect your private information, such as as your computer address and credit card information. You don't desire to go a victim of identity theft!

5. Beware debt management services -- If you need a credit counsellor because you're filing for bankruptcy, ticker out for any agency that heavily advances debt management programs. These arrangements are often large cozenages that tin cost you large amounts of money in fees. They also are NOT required by the new bankruptcy laws, despite what some fly-by-night credit counseling agencies may seek to state you.