Credit Card Counseling, Real and Fake

Debt has become a serious problem in the U.S., both on a national and personal level. Often times, people find themselves so bogged down with Debt and personal problems that they just can't find a way out. This is where Credit Card Counseling comes in. But the debt-plagued must be ever wary, lest the unscrupulous take advantage of them.

Learn to identify the warning signs between a real credit card counseling service and a fraud. A real counseling service will either work for a very small fee, or for absolutely nothing. A fraudulent company charges an exorbitant fee and makes outrageous promises. They might tell you to apply for an employer ID number and start a new credit history based on that instead of your social security number. A real credit card counseling agency will tell you that this is, in fact, a felony.

Be aware that, in spite of the most promising claims, it is impossible for a credit card counseling service to erase your credit history. They can expunge data caused by identity theft or other things of this nature, but they can never remove negative information from your credit report. A con-artist will tell you that they possess this magical power.

The first thing a real agency will do is inform you of your legal rights. They'll let you know that you have the right to a free report if a company takes adverse measures against you based on your credit. They'll tell you that it doesn't cost anything to dispute expired items or mistakes on your report. A scam agency will try to keep you in the dark.

The final sign that you've fallen for a scam comes entirely too late. The fraudulent company will vanish with your fee, having made your credit worse and blackened your name. Always check with the Better Business Bureau before you pay a fee or sign a contract for credit card counseling.

And then stop spending money like it grows on trees!