Credit counselors are falling all over themselves to help you out of debt, but some do more harm than good. Here’s what you need to know, including whether you need it and the red flags for rip-offs.By Liz Pulliam Weston
Randy is deeply in debt and desperate. He's seen all the television ads from credit counseling services that promise to help him, and he's also been approached by a company that assures him it can painlessly make his debts go away. Is this, he asked me in an e-mail, too good to be true? Often, the answer is yes.
Randy's thinking of entering a world that's fraught with fraud, misrepresentation and controversy. Debt counseling has become a $7 billion industry, but not all the players are legitimate.
The best credit counseling can help people who are behind on their debts get back on their feet. Fly-by-night outfits can disappear with your money, and what remains of your credit rating. In between the two are a whole fleet of operators who may or may not leave you better off than you are now.
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