Basic Money Management

NEW BANKRUPTCY LAW SPARKS INTEREST IN CREDIT COUNSELING

On April 21 President Bush signed a new bankruptcy ill into law which will impact debt-ridden Americans.  The new law goes into affect in six months and will require consumers to qualify before declaring bankruptcy.  Consumers also will be required to seek credit counseling from a trustee-authorized agency at least six months before filing for bankruptcy. 

Given the long-term consequences, bankruptcy clearly is a method of last resort.  A reputable nonprofit credit counseling service may be able to help you set up a plan to repay your debts.  But how do you know if an agency is trustworthy?  CCCS of MD & DE, a nonprofit with 39 years of experience in the debt management industry, recommends asking:

• How much does your agency charge in fees?  Get a detailed price quote in writing, and specifically ask whether all the fees are covered in the quote.  If an agency requires a large fee at the start of your program, look elsewhere.