Oct 9, 2008 4:23 pm US/Pacific
CBS13 Asks: Is A Credit Counselor Worth It?
SACRAMENTO (CBS13) ―
Lots of people are turning to credit counselors these days to help lower their credit card payment. So tonight CBS13 asks the question, is it worth it?
"The worst thing you can do is stick your head in the sand and hope it goes away," explains Susan Ulaga, Counselor by Design Financial Solutions.
Calls have doubled from 3000 to 6000 this month, from people worried about credit debt. By Design Financial Services in a non-profit that offers free counseling, and even negotiates payment programs with credit card companies.
"The possibility of lowering of rates and minimizing payments to make it more affordable for them," says Susan.
But counselors make it clear; they're not offering a quick fix. They try to educate people about budgets, to get them out of debt for good. They also warn anyone out there promising a simple solution is probably too good to be true.
"There are a lot of crooks out there trying to take advantage," says Barry Goggin of the Better Business Bureau.
The Better Business Bureau updates its website with the latest scams and shady credit counselors. The Department of Consumer Affairs also urges you to do your homework, a spokesman says.
Credit help companies must be registered with the California Attorney General. Their services should be free or pretty cheap. It is cautioned if they ask for a lot of money, that's a bad sign.
Also, just because a group claims to be non-profit doesn't mean it is legitimate. And the company should offer classes and counseling as part of their long term solution to get you out of debt.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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