If you think you need counseling to improve your financial management skills and your credit, you may want to consult the National Foundation for Credit Counseling (NFCC). This organization offers an online service called Debt Advice that provides basic information to help consumers understand how to use credit wisely and how to find a certified counselor if needed. Housing counseling agencies also are funded by the U.S. Department of Housing and Urban Development (HUD) and are located nationwide. These organizations can provide advice on renting or purchasing a home, credit issues, reverse mortgages, defaults and foreclosures. For assistance, you can contact the nearest agency by calling 1-800-569-4287 or visiting the HUD Web site. The NFCC is an organization of credit counseling agencies that promotes quality credit counseling, debt reduction services and education in managing personal finances. It sets standards for agency accreditation, counselor certification and policies that ensure free or low-cost confidential services. NFCC member offices can be reached toll-free at 1-800-388-2227. If you seek help from a consumer credit counseling agency that is not recommended by HUD or NFCC, beware. Some agencies say they are non-profit but charge high fees and make promises they cannot keep. Any company that makes these or similar statements is unreliable: - We can remove your debt
- Pay us and we’ll pay your bills
- Pay us a percentage of the bills we get rid of
- No company sues over unpaid bills
- We can get bad credit taken off your credit history
- Use our system and you’ll avoid bankruptcy
- Don’t talk to your creditors any more
If you hear any of those statements, steer clear of the company. You can check out a consumer counselor by contacting your state attorney general. The Federal Trade Commission (FTC) also has information on credit counseling agencies. Another helpful site is sponsored by the National Consumers League . CNN Money offers an online budget calculator that enables you to compare your spending to others with similar characteristics. The Myvesta Foundation also provides useful information. Another interesting resource is this article in MSN Money. Meanwhile try to - Make sure all your payments are made on time
- If possible, pay more than the minimum due to reduce your balances faster
- Try not to charge more on your credit cards unless you have an emergency situation
- Open a savings account and make a habit of depositing something each month — any amount would be beneficial and will add up faster than you think!
Remember, you can get all three of your credit reports from all three national reporting agencies once a year at http://www.annualcreditreport.com.
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