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Choosing a credit counseling agency
Most people are embarrassed to admit financial problems, so they don't just
ask around for a good credit-counseling program. Here are a few suggestions to
make it easier, without making the problem worse:
- Look for a nonprofit firm. Nonprofits get most of their funding from
creditors or donations. The nonprofits' relationship with the debt community
also means they can often negotiate better rates on your behalf. But not all
nonprofits are created equal!
- Find out upfront exactly what services you'll receive, such as counseling,
a debt-repayment plan, education and budgeting advice. You might want to get
it all in writing before you proceed. Find out exactly what they are going to
charge you if you go with a debt repayment plan. This would be a start-up fee
and any monthly fees that you would need to pay.
- Ask if the organization belongs to any groups, such as the NFCC or the
Better Business Bureau of Wisconsin. Find out if the agency is accredited.
Have them explain how they're audited and if your funds are protected. Any
debt repayment agency doing business in Wisconsin must be licensed in the
state. If they are not licensed here the fees could be much higher that
allowed by Wisconsin law.
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