How to find a credit counseling company

At LoanBack, you can learn about the benefits of friend and family lending, create a legally recognized loan agreement, set up an easy loan repayment schedule, and more. But if you’re considering borrowing money from a friend or family member, don’t overlook the importance of credit counseling... particularly if you are borrowing money to pay off other debt.

Many people turn to friend or family loans because they’ve gotten themselves into trouble with too many credit cards or other consumer debts. If this sounds familiar, you owe it to yourself and your lender to seek credit counseling so you can change the habits that created your debt situation and pay back your loan. Your friend or family member has assumed both financial and personal risk in agreeing to lend you money. By getting good credit counseling, you can give them peace of mind, make sure those monthly loan payments are made in full and on time, and rebuild your financial stability and credit rating.

One of the most important things when seeking credit counseling is to find a reputable service. There are great resources out there, but not everyone representing themselves as a credit counseling agency has your best interest at heart. If the service you’re considering charges significant fees, for instance, they’re probably not a good choice; there are plenty of reputable free or low-fee services. If they demand personal information or credit history from you before they will reveal anything about their services, walk away. Likewise, if the agency is not a member in good standing of the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies, steer clear.

Although it’s not required everywhere, licensing can also be a way to weed the good from the bad when choosing a credit counseling service. Be sure to check whether or not licensing is required in your jurisdiction. You can also turn to the Better Business Bureau or your state attorney general to see if complaints have been filed against the agency.

You can learn more and get a list of reputable consumer credit counseling services by contacting the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies.

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