Credit counseling

What is credit counseling?

When you find it challenging to manage your bills and debts, seeking guidance from Debt Counselors can be a wise move. They offer expert advice on handling our debts and creating and maintaining a budget based on your current income.Credit Counseling, sometimes referred to as Debt Counseling, involves working closely with a professional advisor who provides comprehensive guidance on setting budgets, managing personal finances & devising effective debt repayment strategies.

Typically, these counseling sessions are personalized to your specific situation. Your counselor will thoroughly review all the financial information you provide, helping you devise a budget that considers your income and expenses. Furthermore, they will help set up suitable payment plans for each of your outstanding debts. In certain cases, Debt Counselors may have pre-negotiated lower interest rates with various creditors, offering potential benefits to their clients.

However, it’s important to note that Credit Counseling does not reduce the total amount of debt you owe; rather, it equips you with tools to manage your debts more effectively. Keep in mind that while working with a Debt Counselor, your current credit card accounts may be closed to new charges. Moreover, you will be expected to refrain from opening new credit cards or accumulating additional debt while undergoing the program.

If you are struggling to make minimum payments or heavily relying on credit cards to meet monthly expenses, Credit Counseling might not be the most affordable and suitable option for your circumstances. In such cases, it would be wise to explore alternative solutions better tailored to your needs and budget.