Sometimes we don’t realize how smart our parents are until we grow older. At least that’s the case for one woman, who admits she’s in a “bad financial situation.”

“I stupidly did not listen to my parents’ advice about saving money and avoiding debt,” she said. Now she’s more than willing to listen. “Can you give me some advice about selecting a legitimate credit counseling agency?”

It’s important to select an agency that employs counselors who are certified and trained in consumer credit, money and debt management and budgeting. In addition, any agency that claims to be nonprofit is obligated to provide education and counseling.

Avoid companies that want account numbers or other financial details before they will discuss services or fees, boast they can reduce monthly payments as much as 50%, promise that it will be easy to get out of debt or say it will take only a few minutes to evaluate your financial situation.

Run from any credit-counseling agency that claims it can remove accurate but negative information from your credit report. It can’t. When choosing a debt-counseling agency, be selective.

Arrange an interview at several agencies before signing any contract for services. Contact the National Foundation for Consumer Credit at (800) 388-2227 or the Association of Independent Consumer Credit Counseling Agencies at (800) 450-1794 for a list of members close to your home.

Make sure the agency you plan to use is licensed to offer services in your state. Many states, including New York, require that credit-counseling organizations obtain licenses before they start accepting clients. To verify a New York York State credit counselor is licensed, contact the New York State Banking Department or call (877) BANK NYS (877-226-5697).

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