In a world of scams and hackers trying to steal your information or money, it can sometimes be hard to trust others, particularly when it comes to your finances. But if being in debt has taken over your life, getting help is the right step.
As the saying goes, “Knowledge is power,” so knowing what to look for can help you find a certified agency and the confidence to take that first step toward financial freedom. Here’s how to know if a credit counseling agency is the real deal.
Go Straight to the Source
Not sure where to start? The National Foundation for Credit Counseling (NFCC) and the Financial Counseling Association of America (FCAA) make it easy to find a certified, reputable agency in your community.
Accreditation Matters
When looking at different agencies, you'll want to make sure they’re accredited by industry standards: the NFCC or FCAA. It’s also important to know that certified credit counseling agencies are 501(c)(3) nonprofit organizations, so check their website for that specific disclosure. A search on the Better Business Bureau (BBB) will also show you whether they’re a member with a good reputation.
Check Reviews
A simple Google search can quickly help you find what others are saying about the organization in question. This includes the BBB, as well as TrustPilot. But forums like Reddit can also help you get a feel for other people’s experiences with the organization.
Are There Hidden Fees?
Nonprofit credit counseling agencies offer budget help, counseling, and financial education free of charge. Services like a debt management plan (DMP) may cost a small monthly fee, typically $40–$50, but organizations may waive it altogether if you’re unable to afford it.
Buyer Beware
When looking for a certified credit counseling, don’t get fooled by companies offering debt consolidation or debt settlement. Debt consolidation can help your credit score, but you’re not guaranteed approval, and if you have bad credit, interest rates can be high. Meanwhile, debt settlement companies are for-profit companies that often advise you to stop paying on your debt completely. This means your credit score will take a hit, and there’s no guarantee your lenders will agree to settle—meaning you now owe more money than you began with. Plus, they often charge 15%–20% of your settled debt.
The path back to financial stability starts with finding a certified agency you can trust to help you get there.