Single Mom Mortgages | Twitter | Newsletter | Archives | Downloads
Consumer Credit Counseling For Single Moms
If you are like most single moms, you probably struggle with credit card debt to some extent. If your credit card debt is getting out of hand, you may be wondering about the credit counseling services that you see advertised all of the time. Are these worth your time, effort, and money, or are they just another scam trying to take some of your hard-earned money from you? While some credit counseling can be helpful to those struggling with debt, you need to know what you are getting into before you sign on the dotted line!
First, you should know what you can expect when you partner with a consumer credit counseling company to work your way out of debt. One of the main services they will offer is helping you create a workable budget that will give you the ability to pay off your current debt and avoid future debt. They may negotiate with creditors to lower your payment or your interest rate, and they may work out a debt repayment plan for you that they will implement on your behalf. These are all things you can do on your own, but as a single mom you may not have the time to do so.
Of course, these services are not free. Even though most credit counseling companies are non-profit, you will still pay for the services. You may pay an upfront fee, or you may pay a percent of what you end up saving after using the service. This money is not used to turn a profit, providing you choose a legitimate company, but rather to pay expenses such as salaries and overhead.
If you feel that you need some extra help to deal with your financial situation, then consider partnering with a credit counseling agency. However, choose carefully. Many companies market themselves as consumer credit advocates, but they are actually only looking to make a profit.
Choose an agency that is a member of the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. These two organizations provide a measure of protection for the consumer, and finding a company with membership to them will help ensure you are getting good help. Also, check with the Better Business Bureau and your state's Attorney General's office to see if any consumer complaints have been filed against the company you are considering. If they have a good reputation and are a member of either NFCC or AICCCA, then you have probably found a good company to help you work your way out of debt.
