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Watch video: How credit counseling helps you pay debt and save money

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Credit counseling pros and cons

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Howdy! I'm your debt helper

Curious to know how to pay off debts?

Why should you go for credit counseling?

  1. To manage bills responsibly
  2. To develop a personal budget
  3. To get an affordable repayment plan
  4. To reduce your monthly payments

Who offers credit counseling services?

  1. Non profit companies
  2. For profit companies

How much you can save

Amount you can pay monthly on your debts.


Credit counseling - How this program works

Consumer credit counseling programs assist you to rebuild your credit through reasonable repayment plans. The programs offer free educational materials and smart money management tips to you. The counselors explain what is credit counseling in details so that you can take the maximum advantage from it.

How this program works

This program works in the following step-by-step process.


  • The counselors will make a comparative analysis of your income and expenses first. They'll find out if you're going through the worst financial phase.
  • The counselors will share tips to manage money and budget.
  • They'll contact your creditors and revise the repayment plan on the basis of you financial situation.
  • They'll let you know about the mistakes that have ruined your credit. They'll share the tips to rectify those mistakes.
  • The counselors will guide you from time to time till you're able to start a new financial life again.

Credit counseling agency - How you can benefit from it

You can benefit from credit counseling programs or agencies in the following ways:


  • You can figure out if your expenses are more than income
  • You can get customized money management plan to meet your goals
  • You can get free educational materials
  • You can get advice to resolve financial issues
  • You can get tips to repair your credit
  • You can reduce interest rates on your loans
  • You can manage finances like an expert
  • You can pay back creditors through easy repayment plans

Why you should get credit counseling services

You can contact a credit counseling company to:


  1. Widen your financial literacy
  2. Manage your debts smartly
  3. Repair your credit slowly but steadily
  4. Get help in budget planning
  5. Decide if you really need to file bankruptcy
  6. Know how you can avoid or stop foreclosure

Types and forms of credit counseling


Types


Credit counseling services are offered by 2 types of organizations: for-profit and non-profit organizations. Read below to know about them.


For-profit credit counseling


For-profit organizations charge a fee for their services. They'll charge an amount for negotiating with your creditors. These organizations work mainly for their own interests rather than the cash-strapped consumers.


Non profit credit counseling


Some consumers prefer to get financial help from a non profit credit counseling agency as they charge only a nominal fee for restructuring debts. They offer free educational materials and a variety of resources to manage finances. They offer free credit counseling sessions wherein consumers are able to analyze finances properly.


Forms


You may get counseling services from traditional and online counseling agencies. Read below to know about the basic difference between traditional and online counseling services.


Online credit counseling


This is quite suitable for consumers since they can get counseling services online. They can fill out some forms and get counseling sessions 24*7 at the comfort of their homes. The counselors will analyze the financial situation of consumers and initiate the negotiation process.


Traditional counseling


In traditional counseling programs, consumers can interact with counselors face-to-face and get an comprehensive idea about their financial situation. They can go to a brick and mortar office and meet a credit counselor who can help to fix their financial problems.


6 Questions you should ask to choose the best credit counselor

Check out the 6 questions that you must never fail to ask in order to select the best counselor for yourself.


  • Will you be given educational materials?
  • How much do you've to pay for the counseling sessions?
  • What kind of services can you get from the agency?
  • Is the agency licensed in your state?
  • Will you get any kind of written agreement?
  • Are the counselors certified from NFCC?

Credit counseling agencies help consumers to start great financial life through affordable debt repayment plans, practical budget plans, wise money management tips, etc. Millions of consumers are facing various types of financial problems. Credit counseling helps them to handle those problems smartly.

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