Family Credit Counseling Service receives hundreds of calls per week
from consumers looking for credit counseling and debt management
assistance. Often one of the first questions asked by a consumer is,
“Are you a non-profit organization?” My answer to this question is,
“Yes, but if you’re trying to find a trustworthy credit counseling
organization to assist you in becoming debt free, this is generally
not an adequate question to measure the legitimacy of a credit
counseling organization.”

Bottom Line: It’s good to know that an organization is a non-profit
organization. It’s even better if they are members of the Better
Business Bureau. If you’re really interested in ensuring you are
dealing with a legitimate organization, determine if that
organization is a licensed debt management provider in your state.
There are many states that don’t require licensing, but there are
many that do. Find out if your state requires licensing and if so,
choose a credit counseling organization from this short list. The
chances you will have the opportunity to speak to a credit counselor
that has your best interests in mind will increase greatly.

Ever find yourself in the intimidating position of dealing with a collector? Collectors can be very intimidating and persuasive, especially if you don’t know your rights as a consumer.

The Fair Debt Collection Practices Act protects you from the abusive practices of some collection agencies; the problem - most of us don’t know what rights this legislation provides. Did you know a collector is required to stop contacting you at your place of employment as soon as you request they stop calling you there? And did you know you can write a Cease and Desist letter to a third party collector which requires they cease collection efforts unless they decide to pursue further legal action?

Bottom Line: Know your rights as a consumer, especially if you find yourself faced with this situation. Avoiding creditors and making broken promises to pay are not the best ways to deal with a collector. Find out what your rights are and get help from a reputable source if necessary.