Payday Loan Tip #3: Seek Credit Counseling

Get Credit Counseling Help

Consumers who are in financial distress can get help from credit counseling that is done well. Also, families who need to plan a budget can also find help from credit counselors. These agencies have traditionally offered a variety of services and products, including things like community education, budget counseling, and financial advice. They also offer debt management plans, known as DMPs, but consumers should be aware that the credit counseling industry is not perfect. There have been some serious problems with some of these agencies, including poor advice, unnecessary fees, and even using deceit to gain customers.

Not everyone can benefit from credit counseling. You should evaluate all the choices you have to resolve your financial difficulty before you enter a credit counseling program. You can always work to develop a better budget and savings plan, or even negotiate with your creditors on your own. If your situation is serious, declaring bankruptcy is an option to consider.

If you do decide to use a credit counseling agency, take the time to shop around for one. Many companies who advertise on television or online are not actually credit counseling companies. They are actually companies known as credit repair companies. If you work with them, you will find that you are charged high fees for things that you could be doing yourself without any help. Talk to your friends and family members to get referrals. Also, check with the Better Business Bureau or your state's Attorney General's office to learn which of these agencies have any complaints filed against them. You can begin your search through the National Foundation for Credit Counseling, but be sure to take the time to look at many different agencies in depth before you choose one to work with.

Learn more about credit counseling. For more consumer tips, click here.

If you are a member of the military or are retired from active military duty, Military OneSource is where you can go to get help. Find the installation that is near to you and use their family service center or support center to get the financial help you need. You can find them by calling 1-800-464-8107. Another option is to check with a military relief society to get financial counseling. Those who are in the Navy or the Marines can contact the Navy Marine Corp Relief Society. Those who are in the Coast Guard can get help from Coast Guard Mutual Assistance.