When seeking help with debt, whether personal or business related, there are many organizations and groups peddling their services. Some are legitimate, others less than so. Before choosing a pathway out of debt, it is imperative to fully understand the options you have.

Credit Counseling: In California it is REQUIRED that all clients take part in credit counseling prior to filing for bankruptcy. Credit counseling is designed to help with debt and teach clients way in which they can better manage their finances in the future. There are two sessions which must be completed separately: debtor education and credit counseling. While many organizations advertise “credit counseling,” not all of these are approved by the department of justice. Be sure to check with legal counsel before choosing a credit counseling organization. These agencies are permitted to charge fees for their services, but be sure the fees are all listed up front and agreed upon prior to any counseling sessions taking place. A reasonable fee is defined as roughly $50, though this can vary as well depending on the operating costs of the agency and the ability of the client to pay. Sessions typically last 60 minutes, though this too will vary based on the needs and circumstances of the client. Finally, it is important to understand when seeking help with debt that credit counseling will not necessarily have any affect on your credit score. Many companies advertise credit report cleanup, but any such claim is dubious at best. Seek legal advise before paying for services such as these. Consult with a debt solutions attorney to see how help with debt can come in the form of credit counseling.

Debt Consolidation: Debt consolidation is simply taking on a […]