There are serious credit counseling agencies that rescue people from the deepest financial holes. There are some of such agencies that just shovel in more dirt. How do you tell them apart?

How to Recognized A Reliable Credit Counseling Agency

__Member Of The Better Business Bureau
A good and serious Credit counseling agency should have a BBB logo and a link to their record on the Better Business Bureau website on on the website of the agency.

__Accreditation
Reputable credit card counseling debt services will be accredited by an independent nonprofit, just as many schools are. One such accreditation body is the National Institute for Financial Counseling Education.

__Fees
The fees charged by a good counseling agency is usually around $30. A few of them also charge a fee upfront, though this fee should be reasonable (around $50 tops). It may be possible to get a hardship waiver of these fees if you truly do not have the $30-50.

__Clear Application
The application must clearly indicate what the fees to be paid are, what the services to be offered, and in what timeframe all of this will be provided.

__Reasonable Promises
Stay away from any organization that proposes to “wipe out” your debt for you, rather than simply helping you to repay the debt. Short of your creditors just deciding to forget about the debt (unlikely), there is no way to eliminate debt–even bankruptcy leaves a huge mark on your credit report for ten years.

True, your car may not go missing from your driveway if you stop paying unsecured debt (i.e., debt that is not “secured” with collateral, like most credit cards, unlike most auto loans). But you are still legally obligated to pay the debt, and the possibility of being taken to court will loom over you. You will likely be unable to get even “bad credit” financing if you still have debts in collections–good luck buying a car or house.

Not Necessarily Signs of a Reliable Agency
XX Nonprofit Status
Nonprofit status is not a government endorsement of a group’s mission but rather essentially a tax designation. There are many of near-fraudulent credit counseling agencies that are registered nonprofits.

XX Respectable Name
Any group can put words like “Alliance,”"National,” “Assistance,” and other trust-inspiring words in their name. But ,remember,a name is just a name. You have to make sure to check any organization against the list above to make sure they’re reliable. Also search for the group’s name on a search engine. Don’t just look for a lack of negative reports–that might just mean the group changed names recently. Instead, look for positive reviews from real people, and preferably mention on reputable third-party websites, such as news sites.

Ready to find a credit counseling agency then just use the checklist above, and you’ll have no trouble separating the saints from the scams.

If paying your bills is very difficult for you, you should first try to work out a budget that details your income and expenses. When you have been able to identify where your money is going, identify your spending priorities. Your public library has information archived on how to draw up a sound budget. Many local community organizations sponsor counseling programs as well.

You should contact creditors immediately if you are having trouble making payments. Most of them will try to work out a more suitable payment schedule if they believe you are acting in good faith.

After attempting these steps and if you are still having serious problems , another option is to contact a credit counseling services to create a debt repayment plan. In these plans, you work out a payment agreement with a counselor, and the service distributes your payments to the creditors.

Other ways of dealing with debt or reduce credit card debts include consolidating debt through loans and bankruptcy. These methods are with serious consequences, and should be taken only after consultation with an attorney.

If you cannot obtain credit on your own, you can try to obtain a credit card or consolidated loan with a low credit limit from a local bank.

If you pay regularly and that creditor reports this to a credit reporting agency, this information could improve your credit record. Another option is to obtain a secured credit card. Type of card will enable you to place a certain amount of money in a bank to guarantee your credit, and the credit grantor gives you a small credit line.

There is no instant solution to rebuilding or repairing your credit. You only have to work out a solution that fits your current situation. Regardless of the solution, it will take time to get back on your feet and establish good credit again.

It can be done with persistence perseverance . You just have to, stick to a budget, and pay off those bills. You will be back to normal very soon and able to lead a life where creditors don’t hound you day and night.

More on how to eliminate credit card debts