Credit Counseling Warning Signs

For many consumers, debt counseling is a step in the right direction. As with almost every industry, however, there are always going to be seedy and unethical businesses and individuals out to cheat you of your money. Protect yourself, and think twice about any credit counseling organizations that do any of the following:

• Assess exorbitant up-front or monthly fees to enroll in credit counseling or a DMP

• Will not provide free information about their services without you turning over personal information like account numbers and balances

• Try to pressure you into enrolling in a DMP without thoroughly reviewing your personal financial situation and/or teaching you budgeting and money management skills

• Insist on you paying into a DMP before your creditors have accepted you into the program  ■