What to Ask a Credit Counselor Before You Sign Up

When bills are hard to manage, credit counseling can sound like a sensible first step. Before sharing your finances or signing up, find out exactly what the organization provides and what it costs. The Federal Trade Commission (FTC) says reputable credit-counseling organizations should send you free information about their services before you discuss your own situation.

Ask what the review involves

The FTC says a reputable organization should take a thorough look at your finances. Ask who will review your situation, what the review includes, and whether the service is counseling, a debt-management plan, or something else. Do not assume that an initial conversation will erase a debt or change what you owe.

Get the costs in writing

Ask for the total fees and when they become due. The FTC says a local credit union, university, community college, or military personal financial manager might offer low-cost counseling. Confirm the cost before joining any program. A counselor should not charge in advance for help it has not yet provided.

Separate counseling from debt-relief pitches

A company that promises to settle every debt or deliver fast loan forgiveness is a warning sign. The FTC also cautions that debt-relief services demanding payment before settling debts or entering you into a debt-management plan are scams. An unexpected text or call pitching a quick settlement and requesting personal or financial details is another reason to stop and independently verify the provider.

It is worth taking a moment to compare what services actually include: free initial information, a thorough review, clear fees, and no blanket guarantees. This article is general consumer information, not individualized financial or legal advice.

Primary source: https://consumer.ftc.gov/consumer-alerts/2026/03/looking-debt-relief-heres-how-avoid-scam