Tips & Topics - Debt
Determine if Credit Counseling is Right for You
Credit counselors specialize in helping its customers get out of debt and can often negotiate a lower interest rate and fees than you would be able to do on your own. But be careful – some businesses that claim to help you get out debt can actually leave you worse off than when you started.
Before contacting a credit counselor consider the following:
- The Federal Trade Commission has created a guide to help you ask the right questions before you agree to a credit counseling program as well as tips about what to do if you were enrolled in a program that has gone defunct.
- The New York State Banking Department offers tips to help you determine whether you should contact a credit counselor to get control of your debt.
- The Banking Department also provides a listing of credit counselors it supervises. It’s a good idea to make sure your credit counselor is licensed by the State of New York before doing business with them.
Remember: Not every credit counselor is the same. It’s important to shop around for one that best fits your needs. Don’t be afraid to ask about fees and if you feel as though you’ve been a victim of a scam, contact the FTC at 1-877-FTC-HELP or visit their the FTC website. You may also call the New York Attorney General’s consumer helpline at (800)771-7755 if you feel you’ve been victimized by a fraudulent credit counselor.