Credit counselor providing financial advice to a young couple in his office.

How to Find the Best Credit Counseling Organizations

Best Credit Counseling: How to Find Quality Services

Addressing debt is not something that many people look forward to doing.  When faced with deciding between continuing to struggle to pay your creditors and placing trust in an organization to deliver on its promises of debt relief, it can be difficult to make a move with surety. Credit counseling in most cases offers a risk-free, trustworthy way to receive personalized financial advice. The best credit counseling can identify multiple solutions for your situation and goals and empower you to make forward progress.

If you’re struggling with debt and looking for help managing your finances, credit counseling services can be a valuable resource. Here are some tips to help you find the best credit counseling services:

  1. Look for a non-profit organization: Non-profit credit counseling agencies typically offer free or low-cost services and are less likely to be motivated by profits than for-profit agencies.
  2. Check for accreditation: Look for a credit counseling agency that is accredited by the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). These organizations require agencies to meet certain standards and provide quality services.
  3. Research online: Read reviews and check ratings on the Better Business Bureau website or other online directories to find reputable credit counseling services.
  4. Ask for recommendations: Talk to friends and family members who have used credit counseling services in the past to get their recommendations.
  5. Check the services offered: Make sure the credit counseling agency offers services that meet your needs, such as debt management plans, budgeting assistance, or financial education.

By following these tips, you can find a credit counseling agency that can help you manage your finances and get back on track financially. Let’s examine what credit counseling is and when it should be considered an effective tool for dealing with debt problems, as well as some of the specific services that quality credit counseling organizations provide.

What Is Credit Counseling and What Is Its Purpose?

Credit counseling is a free service offered through nonprofit agencies whose core mission is to create access to financial education. Not indicated by its name, credit counseling can include assessing income compared to spending, identifying and clarifying past debt history as well as other instances of borrowing, and formulating ideas for general financial improvement.

The purpose of credit counseling is to understand a client’s debt and credit-related goals and their ability to achieve those goals on their own. Should the client need additional resources or support, a credit counselor is able to discuss the pitfalls or benefits of each.

The best credit counseling serves as more than just a one-time financial fix. Its holistic approach seeks to address the cause of burdens and build self-sufficiency within the household being counseled. Nonprofits that provide credit counseling, such as Money Fit, are passionate about arming their clients with the know-how to lead a life free from debt and other financial worries. Working alongside their clients, they ensure a future filled with hope.

When Should You Consider Credit Counseling?

Many debts or credit issues can be resolved in a do-it-yourself fashion. These circumstances may include:

  • Negotiating a repayment plan with creditors

  • Paying off a thousand dollars or less in debt

  • Arranging debt consolidation through a personal loan or balance transfer card

  • Repairing poor credit over time

Those who feel stuck living paycheck to paycheck and face ballooning credit or loan balances, collection attempts, burdensome medical debt, or are on the brink of bankruptcy only stand to benefit from meeting with a credit counselor to discuss options.

No matter how large or small your debt is if you are feeling overwhelmed, you can find guidance, clarity, and peace through credit counseling services. Seeking help may be especially beneficial if you find yourself in one of the following situations:

You have over $1,000 in one or more forms of unsecured debt

  • Your monthly payments are becoming unaffordable

  • You are stressed from being contacted by collection agencies

  • Late fees and increasing interest have resulted in insurmountable balances

  • You struggle to break your dependency on credit

  • A poor credit score has impacted your financial opportunities

What Services Do the Best Credit Counseling Agencies Offer?

If you schedule an appointment for credit counseling, you can expect to spend much of your time detailing your debt, the factors that contributed to it, and the options you have to make debt repayment more comfortable.

If it is reasonably difficult to manage your debt on your own, your counselor may offer information on the benefits of enrolling in a nonprofit debt management program. This is a form of structured repayment that leads consumers through repaying their creditors in full while saving money in interest and fees. The time spent in debt is also significantly reduced.

Best Credit Counseling

If you are looking for financial guidance beyond debt, many credit counseling agencies strive to offer other resources including the following:

Budget Counseling

During this session, your credit counselor will review your income and spending. They will help you find ways to cut expenses in order to eliminate your reliance on credit and free up money to pay your current debt. If your debt is under control, your counselor may suggest strategies for building short and long-term savings.

Credit Report Analysis

Whether debt has impacted your credit for the worse, or you are just looking to tune up your score for future borrowing, a credit report analysis can help. During this consultation, your credit counselor will review your report for errors, discuss how much each instance of borrowing has affected your credit profile, and suggest ways lenders might want to see you improve (i.e. reducing utilization or seeking credit diversity).

Bankruptcy Counseling

If you have suffered extreme hardship such as extended unemployment, health problems, divorce, or loss of a spouse, your options to rehabilitate your finances may be limited. Credit counseling can be the first step in determining if you should file for bankruptcy. If you decide this is best, you will need to complete two sessions of bankruptcy counseling. Your counselor will be able to detail what to expect from the law offices handling your case, what fees and paperwork will be required, and possible ways to avoid filing for bankruptcy in the future.

How Can Credit Counseling Help You?

If you feel stuck between a hard place and a rock and don’t know what to do about your debt, credit counseling can offer a listening ear and a helping hand. You’ll be given the opportunity to unload your stress and voice the concerns you’ve previously battled alone.

Your credit counselor will then be able to clarify your options and assist you in building a plan for financial freedom. Once you’ve completed your consultation, you can feel relieved knowing that you now have an advocate to stand between you and your creditors.

If you choose to enroll in a debt management program, your credit counselor will work to reduce your interest rates, have late fees dropped, and put an end to collection attempts.

In the case that credit counseling cannot help your situation, consulting with a credit counselor can still inform you of other ways to lift your financial burden.

How to Get Started

By doing your research and following the tips outlined earlier, you can find a credit counseling agency that can help you manage your finances and get back on track financially.

It’s important to keep in mind that credit counseling services are not a one-size-fits-all solution. The best credit counseling agencies will work with you to develop a personalized plan that meets your specific needs and financial goals. This may include creating a budget, developing a debt management plan, or providing financial education and resources.

Working with a credit counseling agency can be a valuable investment in your financial future, but it’s important to be cautious of scams and organizations that charge exorbitant fees for their services. Choosing a non-profit organization that is accredited by the NFCC or FCAA can provide added peace of mind that you’re working with a reputable and trustworthy organization.

Overall, taking the time to research and find a quality credit counseling organization can provide the support and resources you need to improve your financial situation and work towards a brighter financial future.

About the Author

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).