Credit Counseling

Learn what money management is really about and how credit counseling can help.

Credit Counseling as a Debt Relief Strategy

According to CNBC, the average American has about $38,000 in personal debt. Some people can afford that; some people can’t. If you’re here, chances are you’re one of people that can’t—and that’s okay. The good news is, there are debt relief strategies available to you that can help you manage your debt, no matter where you are on the path to financial freedom.

What is credit counseling?

Credit counseling is one such strategy and is exactly what it sounds like: counseling to help you manage your credit. Most people with debt need direction to help them with debt management. Maybe you need to figure out how to organize your finances. If so, finding credit counseling services may be the right option for you.

Credit counseling is often provided by financial education organizations. Your credit counselor will review your credit reports, debt and household budget, then work with you to get your financial situation back on track. 

How does credit counseling work?

Once you’re paired with a credit counselor, you and your counselor will spend time discussing your finances. During that conversation, you may:

  • Receive education materials
  • Discuss your financial situation
  • Learn how to develop a budget
  • Review your credit reports
  • Receive steps to improve your credit and/or finances
  • Learn about other tools and resources that help

Does credit counseling affect my credit?

In and of itself, credit counseling doesn’t affect your credit score but a notation is placed on the credit report one way or the other. If your financial situation is suboptimal, they may end up recommending some type of debt relief strategy beyond counseling alone, such as debt settlement or consolidation. Depending on the type of debt relief strategy, your score will change.

3 tips to get the best of credit counseling

Credit counseling is an excellent choice for many. There are ways to make sure your session goes as smoothly and is as helpful as possible:

Get all your financial information together ahead of time.

Income, debt, monthly expenses, assets: the more information you have available at the time of counseling, the better your counselor’s advice will be. If it has to do with money, track it down and bring the information with you.

Set up a convenient time.

You don’t want to cut your consultation short. The best way to do this is to schedule it around a time with no demands (or less demands) on your time. That way, you can get the most out of your consultation and not miss out on important information. 

Verify they’re the right counselor for you.

Check with the National Foundation for Credit Counseling and Better Business Bureau to make sure they are what they say they are.

Is credit counseling the right debt relief strategy for me?

Credit counseling is for anyone. All you need is the desire to better manage your money. In fact, everyone can benefit from credit counseling, regardless of whether you’re in debt or not. Credit counseling can happen as soon as you get your first credit card, loan or bank account. A counselor can show you how to manage your credit in order to build and maintain it in good standing. 

Remember, you have options when it comes to debt relief. Get the information you need to make an informed decision about your finances. Call us today, for a free, no-obligation consultation.

Get the option that works for you.

It’s easy to guess where you are with finances and debt solutions, but you need to make an informed decision. Start with a one-on-one free consultation with one of our debt professionals to get real, helpful information. Start on the path to financial freedom.