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Locate credit counseling companies in your area that help with debt relief through the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. These professional organizations impose high ethical standards on their members, the Better Business Bureau advises, so only reputable companies join them.
Call several local credit counseling companies and ask whether they offer debt-relief plans, which are also called debt-management plans. Inquire about any fees and ask where the companies get their funding. Reputable nonprofit credit counseling firms are funded mainly by money from creditors, not clients, according to the BBB.
Ask prospective counseling firms if their counselors are trained and accredited by an outside agency. Find out how the
counselors are compensated. Reputable companies do not give commissions to their workers for talking you into certain services such as debt-management plans because another solution might be more appropriate for you.
Request a sample contract copy from the firms you are considering. The contracts should disclose all fees and details of the services provided to clients. Legitimate credit counseling firms use written contracts, so do not rely on firms that only give verbal information and promises.
Check the Better Business Bureau rating for the firms that appear reputable and contact the Federal Trade Commission or your state attorney general to see if there are any complaints. Avoid firms that have a history of problems or that are being investigated by state or federal officials.