Best credit counseling services

Credit card debt, student loans, and mortgage payments can be overwhelming, and you’re not alone if you’re falling behind on managing your debt. Credit counseling services can provide solutions to help you navigate your options and get back on track sooner rather than later. These companies can provide credit counselors to help you assess your financial situation and create a plan to get your finances back in order.

If you’re considering a credit counseling service for debt management, it’s a good idea to research reputable options with upfront and transparent pricing, certified advisors, and an excellent track record.

What is a credit counseling agency?

A credit counseling agency is (typically) a non-profit organization that provides advice and guidance to people who need help managing debt. These companies help consumers create debt management plans and make decisions about housing costs, budgeting and general money management. They can also provide advice and guidance on bankruptcy, student loan management, and other financial topics.

While advisors can help you with a variety of financial issues, they often specialize in helping consumers create specific plans for managing their debt. This may include negotiating lower interest rates, lower fees, and lower payments. You may have the option to make a single payment to the credit counseling agency each month while the agency handles payments to creditors, ensuring timely payment.

Credit counselors at these agencies are typically certified and trained in specific areas of money management, so they can provide targeted advice and plans. You can meet them in person, online or by phone.

How to choose a credit counseling agency

When choosing between credit counseling services, you should pay attention to a few important features:

• Certified advisors: You can confirm whether an agency uses certified credit counselors before signing up. Counselors at a reputable agency are probably certified in the areas of consumer credit, money and debt management and budgeting.
• Transparent rate schedule: One of the most essential aspects of choosing a consumer credit counseling agency is selecting one that offers complete transparency about costs. Even though credit counseling agencies fall under nonprofit status, it is not uncommon for them to charge high fees, so finding a reputable option with upfront pricing is critical.
• No personal information in advance: The Consumer Financial Protection Bureau also warns that consumers should be able to get free information from a credit counseling service without first having to provide personal information. If an agency insists on personal information in advance, that’s a red flag.

Several resources can help you find approved and reputable credit counseling services, including your office of the attorney general And Consumer Protection Agency. You can also search for a list of approved credit counseling agencies via the Ministry of Justice.

The Financial Counseling Association of America and the National Foundation for Credit Advice also provide directories for finding reputable agencies.

You can also look for a credit counselor through a credit repair company.

Highly rated credit counseling agencies

If you’re considering working with a credit counseling agency, here are some of the most reputable options you can explore.

Cambridge Credit Counseling Corp.

Founded in 1996, Cambridge Credit Counseling offers a free initial consultation, a wide range of financial literacy services and resources. Cambridge Credit Counseling offers services such as:

• Assistance with bankruptcies
• Credit advice
• Debt management plans
• Debt consolidation programs
• Housing advice and prevention of home foreclosures
• Student loan advice

Cambridge Credit Counseling operates as a 501(c)(3) nonprofit organization. It is a HUD-approved housing counseling agency and a member of the Financial Counseling Association of America (FCAA) and the National Foundation for Credit Counselors (NFCC). Cambridge also employs certified third-party consultants who undergo extensive training and continuing education during their tenure.

Cambridge Credit Counseling offers a dashboard that allows you to track payments made on your behalf (if you are working with a debt management plan) and other valuable information.

The cost for Cambridge Credit Counseling services depends on your state, but initial and monthly fees are capped at $75 and $50 each. The average monthly amount is $30.

Consolidated credit solutions

Consolidated Credit Solutions has been operating as a 501(c)(3) nonprofit organization since 1994 and has helped more than 10 million people get out of debt. The agency offers a wide range of options for managing debt and other financial matters. It offers personal finance tools such as budgeting, money management, thrifting and saving.

Consolidated Credit Solutions also offers multiple debt and debt management services. It provides guidance on debt consolidation loans, balance transfers, bankruptcies, debt settlement and debt management. The agency also offers digital tools such as an extensive library of online financial resources and an app for iPhone and Android users to help you track your debt management program.

Consolidated Credit is a member of the FCAA and a HUD-approved housing counseling agency, and all counselors are Certified Personal Financial Advisors. Whatever process you are considering for accounts receivable management, you can start the process with a free initial consultation.

GreenPath financial wellness

GreenPath Financial Wellness has more than six decades of experience in credit advice. Hundreds of credit unions, banks and employers partner with GreenPath, and it is available in all 50 states. It offers an extensive list of debt counseling services, including debt management solutions and repayment plans. You can work with one of the NFCC-certified counselors for guidance on credit, student loan, or housing services.

GreenPath Financial Wellness does not charge for counseling sessions, which last approximately one hour each. If you choose to continue with a personal debt management plan, you will be responsible for a one-time enrollment fee of $35 and a monthly fee of $28. You can cancel the program at any time.

Money management international

Money Management International, or MMI, operates as a nonprofit organization and has worked with more than 2.5 million individuals or families and helped clients repay $10 billion in debt. MMI offers a wide range of financial services, including:

• Assistance with bankruptcies
• Credit advice
• Credit report reviews
• Assistance with bankruptcies
• Guidance for home buyers
• Reverse mortgage advice
• Student loan advice

MMI also stands out for its disaster recovery advice. Through the Project Porchlight initiative, MMI works with individuals living in a place where a federal or state declared disaster has occurred and provides a recovery plan with the help of a certified counselor.

MMI offers free counseling sessions, but if you use a debt management plan you will pay an additional fee. It also offers 24/7 access to advice, or you can get started earlier with the online chatbot. MMI is HUD certified and a member of FCAA and NFCC.

Steps to Take Before Seeking Credit Advice

In some situations, working with a debt management plan and credit counseling service can help you get out of debt faster. However, it’s also a good idea to first consider what steps you can take to avoid additional costs or impact on your credit:

• Contact your creditors directly: You don’t have to use a credit counseling service to call your creditors and negotiate rates. You can contact a creditor directly and ask for a reduction in interest rates, a change to your minimum payment or due date, or a modified short-term payment plan.
• Look for balance transfer alternatives: You may be able to transfer a balance to another loan or credit card with a lower interest rate (or zero percent) or a lower minimum payment. This can help you reset until you can make larger monthly payments.

How to protect your finances when using a credit counseling service

If you decide to move forward with a credit counseling service, you can take steps to ensure that you select a legitimate, reputable agency. The FTC suggests you inquire about an agency’s licensure, the qualifications of its consultants, and its services. Avoid any agency that promises to solve all your financial problems or requires you to pay money upfront before beginning counseling.

You can also ask about the fee structure and what measures the agency uses to ensure your data stays safe and out of the hands of scammers or identity thieves. Inquire about employee compensation and whether or not the advisors make more money if you sign up for certain services (a clear red flag).

it comes down to

If you’re overwhelmed with your finances and debt management, turning to a legitimate credit counseling service can help you make a plan and get back on track. Before signing up, research legitimate companies like the ones listed here. Look for credit counselors who are members of reputable organizations, such as the FCAA or NFCC. It is also best to work with an agency that offers transparent pricing and only uses certified consultants.