With the debt levels at all time high, credit counseling agencies are reaping on the boom. However, as a consumer, it is in your best interest to choose a credit counseling agency wisely. In generally accreditation is helpful and an accreditation with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies is recommended.

When you have narrowed the list of credit counseling agencies you want to work with, it is a good idea to call up your local Better Business Bureau and see if any complaints are filed with them. If a credit counseling agency has many complaints filed against them, you are better advised to move on with other companies.

It is also important to understand what is being offered by a credit counseling agency. A reputed credit counseling agency will offer you a range of services including a certified personal counselor, personal financial budget calculation worksheet, DMP (debt management plan) details, work with creditors to lower interest and a lot of free resources and credit counseling information.

If a credit counseling agency offers erasing your credit history, it generally indicates a red flag. Credit history cannot be erased. Accurate information about your credit accounts will stay on record for 7 years.

Credit counselling fees: A reputed credit counseling firm will offer budget services for free and charge you for DMP (debt management plan) or other premium services you seek. As a consumer look out for a reputed credit counseling agency that will charge you between $15 - $30. $50 can be considered at the high end of the spectrum when you are totally comfortable with the services they offer.

Try to gather further information on credit counselors. Ask what kind of training is given to credit counselors. Ideally look for companies that offer training as well as accreditation by an outside source. Additionally ask how the credit counselors are paid? If they are paid a commission, they might pressure you into accepting a DMP.

I hope all the above listed information will be helpful in selecting the right credit counseling agency for you. Any research before selecting a credit counseling agency will be time well spent.

About the author:

Bill A Smith is a credit and loan counselor for Ameri debt counseling services. Visit our credit counseling center