My most important advice is that you find a nonprofit credit counseling organization that is affiliated with one of two major credit counseling membership organizations. These two member organizations will refer you to a credit counselor in your area that you can work with. Both organizations worked with millions of people last year, so trust me, they have seen it all.
National Foundation for Credit Counseling (NFCC)
- Toll-free: 800-388-2227
Any nonprofit credit counselor who is honest and worth trusting won't do the following:
- He won't pressure you to sign up.
- He won't charge you a huge sign-up fee. In most cases, the sign-up cost for a nonprofit credit counseling organization is $75 (and maybe less).
- He won't charge you a huge fee each month. In most cases, the monthly fee for a nonprofit consumer counselor is $50 or less.
- He won't tell you to stop paying your credit card debt or other debt so he can negotiate a better deal for you.
- He won't tell you he can sue the credit card company on your behalf.
- He won't recommend a DMP first, before he really looks at your overall financial picture.
The 8 steps to get out of debt
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