How To Get Free Credit Counseling in Tennessee?

Find Tennessee Nonprofit Credit Counseling Agencies

First, sign up with a nonprofit organization that offers free services. A nonprofit credit counseling organization works with low income individuals to help them get out of debt. Since non-profit credit counselors in Tennessee offer free advice we strongly suggest that you use their tools to help you with debt relief. 

If you do a quick search on the internet to locate a credit counseling agency, you will find numerous companies. Unfortunately, many of these companies are scams so it is important to do a little research before choosing one. Find the right Tennessee credit counselor for your by making sure they are reputable and you feel comfortable with them.

Don’t just choose the first company you see online. Watch out for any red flags staring you in the face. A reputable credit counseling agency will not charge for an initial consultation. If any company tries charging you don’t even give that company a second thought.

Make sure that the credit counseling company you choose is accredited by the NFCC (National Foundation for Credit Counseling). This will ensure that you are getting good advice. The NFCC is one of the oldest nonprofit organizations out there and makes their credit counselors adhere to strict standards to ensure they are qualified to give good financial information.

Information to Research Before Talking to a Tennessee Credit Counseling Agency

Debt counseling has become a $7 billion industry and unfortunately not all companies are willing to help you. Go to the  National Foundation for Credit Counseling to find a list of accredited counseling agencies. Make a list of your own so that you can do some research on more than one Tennessee credit counselor. Another good place to check out is your state's attorney general’s office to determine whether consumers have filed any complaints about the credit counseling organization you’re considering. If you are still unsure whether the company is a good fit, check with the Better Business Bureau (BBB) to look up the Tennessee credit counseling. The BBB holds businesses accountable to the highest standards in their advertising and selling and correct business abuses. The BBB keeps a list of credit counseling agencies that are well-known for their services by making them undergo tough accreditation standards. If you see any companies that use language that sounds too good to be true to advertise, run away! Some language to look out for are: 

• “Pay now, we’ll erase your debts!”

• “We will eliminate all of your money problems within a month!”

• “You can get rid of all of your debts for one small fee!”

Questions to Ask the Tennessee Credit Counselor Before Signing Up

Before you move ahead with a Tennessee credit counselor to get debt relief, have a list of questions ready to ask to ensure this person is capable of helping you. Always ask how much money a credit counseling service will charge you. Some companies charge thousands of dollars even though they can’t guarantee a favorable outcome. Also, ask if the company is accredited. If the company is not accredited don’t sign up. It is better to go with a reputable company even if the counselor is telling you everything you want to hear. Be aware that some counselors are paid bonuses or incentives for signing users up. You can ask the counselor how they are paid. If they are paid by bonuses this is a warning that you should go somewhere else because they may just be trying to get as many people as they can to join their agency, instead of really caring about your specific financial needs. To begin your counseling session you’ll need to find out what financial documents you should have on hand. The counselor can only recommend different solutions if they have a full picture of your financial situation. So don’t forget to ask them which documents they want you to have. A Tennessee credit counselor will talk to you on the phone or online. If neither of these options seem appealing, you will need to find a counselor to meet you in person. Some additional questions to consider are:

• How much will this cost?

• How is the amount of my payment determined?

• How often can I get a status update?

• What will happen if the counselor’s recommendation is more than I can afford?

• How are your services funded?

What to Expect During Credit Counseling

Tennessee credit counselors will do three things to help you get out of debt. First, they will review your specific financial situation. In order to be able to come up with a plan, the counselor and you will need to determine how your debt started. Second, the counselor will go through an analysis of the factors that contributed to the root of your debt. The counselor will work with you to identify any bad habits so that you can change them. Lastly, the counselor will come up with a plan that will be tailored to your specific financial needs. The Tennessee credit counselor will give you different solutions to manage your current situation. Some of these solutions include debt management plans, budgeting, and bankruptcy. Your initial credit counseling session usually lasts one hour. Be ready to go into great detail about your financial situation with your Tennessee credit counselor. Be open and honest so that they can really help you.

What Happens after Credit Counseling in Tennessee

Depending on your financial situation there are many different steps that may be recommended to you. The amount of time that you spend with a credit counselor will depend on your unique situation. You may decide that one session is enough to come up with a plan to tackle your debts. If you feel you need more help the credit counselor may recommend different plans for you to reduce your debt. 

Below are some of the most common plans that a credit counseling agency may recommend.