Internet's first get out of debt community
with 550,157 members
BBB rating of Debtcc


Get FREE counseling and analysis

With proper help you can

  • Lower your monthly payments
  • Reduce interest rates
  • Waive late fees
  • Reduce collection calls
  • Avoid bankruptcy
  • Have only one monthly payment
*
Call
800-DEBT-913
(Open 7 days till 9)
Or
Chat Live
Or

What's more?

Get free counseling
Get a dedicated financial coach
Have a secured client portal
Get smart mobile apps
Get email alerts


Click to get FREE counseling
Category video: 

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

Video on

Credit counseling pros and cons

by

Howdy! I'm your debt helper

Curious to know how to pay off debts?

Why should you get credit counseling help?

  • Manage your bills responsibly
  • Reduce your monthly payments
  • Manage your debts smartly
  • Develop a realistic budget
  • Get an affordable repayment plan
  • Know how you can avoid or stop foreclosure
  • Widen your financial literacy
  • Decide whether or not you need to file bankruptcy
  • Repair your credit slowly but steadily to prove your creditworthiness

How much you can save

Amount you can pay monthly on your debts.


Credit counseling - The first step to solve your debt problems

Consumer credit counseling can help you manage your finances when you’re not able to do it on your own. It is a professional counseling service wherein certified counselors assist you with smart money management tips and suggestions to manage your finances effectively. If you go by credit counseling definition or its main objective, then it can be said that it helps a consumer avoid bankruptcy.

When should you go for credit counseling?

You can opt for consumer credit counseling services when you’re in any of these situations:

  1. 1You’re facing difficulty to make the minimum payments on your debts
  2. 2You’re having problem to figure out your total outstanding debt amount
  3. 3It’s becoming difficult for you to manage your multiple cards and payments
  4. 4You’re using only credit cards for daily expenses
  5. 5You’re using one credit card to pay another
  6. 6Creditors are not increasing your credit limit
  7. 7You’ve taken out or thinking to obtain a payday loan for some cash
  8. 8Creditors are calling you for payments
  9. 9You’re thinking whether or not a DMP or a debt consolidation program might help you resolve your debt problems

Where can you go for credit counseling help?

You can approach an American consumer credit counseling organization when you’re facing difficulty to manage your finances on your own and you need help. These organizations, providing such consumer credit counseling services, also offer educational materials and a variety of resources to manage finances.

How can credit counseling help you repay debts?

When you’re having problem to manage your multiple bills, you can approach an American consumer credit counseling company.

The company will:

  • Make a comparative analysis of your income and expenses
  • The counselor will share tips to budget and manage money smartly
  • If you can’t solve your debt problems even after following the tips and suggestions, the counselor will offer you a debt management plan or a DMP
  • Through a DMP, you can repay your debts under complete professional guidance

Credit counseling - Types and forms

Types:

For profit counseling organizations Non profit counseling organizations
Fees for counseling Usually charge a fee for the counseling services Usually offer counseling services free of cost
Fees for DMP Need to pay professional fee if you enroll in a DMP The professional fees for DMP is relatively less

Forms:

Traditional credit counseling Online credit counseling
Mode of communication You can interact with a counselor face-to-face to discuss your financial situation You can fill out a form and get counseling sessions 24*7 at the comfort of your home

6 Questions you should ask to choose the best credit counselor

  1. 1Is the credit counseling agency licensed to operate in your state?
  2. 2Are the counselors certified from NFCC (National Foundation for Credit Counseling)?
  3. 3If you’re going for bankruptcy counseling, then ask is it a government approved organization?
  4. 4How much do you have to pay for the counseling services?
  5. 5Will you get any written agreement if you enroll in a DMP?
  6. 6Will the counseling agency give you any educational materials?
  7. 7What kind of services can you get from the organization?