How to Get Free Credit Counseling in Minnesota

Find Minnesota Nonprofit Credit Counseling Agencies

You should not simply settle on the first Minnesota credit counseling agency you come across without doing some homework on their reputation. According to the Federal Trade Commission, as well as the NFCC, you should work with reliable nonprofit credit counseling agencies in Minnesota. These Minnesota credit counseling agencies offer counseling services for free. Reputable nonprofit Minnesota credit counseling agencies are more likely to offer credit counselors who are both certified and trained in debt management, consumer credit, and other financial matters, such as student loans. Financial counselors for Minnesota nonprofit counseling agencies operate under strict state guidelines in order to ensure they act in your best interests. Most nonprofit and certified counseling agencies in Minnesota are members of either the Financial Counseling Association of America or the National Foundation for Credit Counseling. Nonprofit counseling agencies are frequently audited by the state.

Information to Research Before Talking to a Minnesota Credit Counseling Agency

When it comes to choosing a Minnesota credit counseling agency, you should remember the old adage "Don't judge a book by its cover." Free service is not the sole reason to choose a Minnesota credit counseling agency. This is because you will find many counseling agencies that call themselves "non-profit," but do not necessarily behave like one. Here are some of the things you should consider before talking to a Minnesota credit counseling agency. The Minnesota credit counseling agency should be licensed and accredited by the COA. Agencies that are members of the NFCC adhere to strict quality standards and undergo regular audits for counselor accreditation, data security, and customer service. Even if a Minnesota credit counseling agency is accredited, you should check its local record with the state attorney general, Better Business Bureau, and various local consumer protection groups that receive and examine consumer complaints. The U.S. Department of Justice also has its search tool that helps consumers find a reliable credit counseling agency.

Questions To Ask the Minnesota Credit Counselor Before Signing Up

Contact different Minnesota credit counseling agencies to get a clear idea of the type of services they provide. Here are a few important questions you should ask while you are shopping around for the best counseling agency in the state.

Do you charge a fee for your credit counseling services? Although a counseling organization is a "non-profit", there is likely to be minimal fees involved in managing your loans and credit card debt. Still, reputable Minnesota credit counseling agencies never charge for the initial credit counseling session.

Can you provide references? References are important as they help give you a real look at how other people feel about their experience with a certain Minnesota credit counseling agency, often with no holds barred. 

What to Expect During Credit Counseling

Minnesota credit counselors will conduct 45 to 60-minute interviews in order to gather information about your financial situation. Most nonprofit Minnesota credit counseling organizations offer credit counseling by phone, online, or in person. The counselors will ask questions about your expenses, income, budget, and assets. To streamline the counseling process, you should prepare by arranging your financial documents.

Credit counseling in Minnesota helps you explore various debt repayment strategies to manage your student loans, credit card debt, and medical bills to get you back on track. They will also pull and review your credit report. However, do not worry, as it will not affect your credit-worthiness.

What Happens After Credit Counseling in Minnesota

A Minnesota credit counselor might suggest a debt consolidation plan or a debt management plan to help you get out of debt faster.