Most Americans will experience debt at some point in our lives. Consumer credit counseling services are there to help those individuals who have overextended their credit. Ideally, these services are there to help you regain financial stability and to put you on the right track to stay that way. Certified and trained credit counselors will evaluate your debts, budget and credit to figure out the best financial health plan for you.
If you find yourself in need of credit counseling, it is a good idea to seek it out as soon as you can before your financial situation gets harder to deal with. Moreover, the more missed payments you incur and the worse your credit rating becomes, you lose out on options that might easily fix your financial woes. Since credit counselors specialize in debt, you should reach out as soon as you find yourself worried about the amount of unsecured or credit card debt you have.
Debt-related issues are often the main motivation for people seeking out credit counselors. Credit counselors can advise on anything from student loan debt to reverse mortgages to the best way to start a small business. Unfortunately, the world of credit counseling can be confusing and sometimes filled with people and companies who do not have your best interests at heart.
What Is a Credit Counselor?
Sometimes referred to as debt counseling or financial counseling, credit counseling is designed to get you back on track. Your income, assets and debt will be analyzed to determine the best course of action for your optimum financial health. Credit counselors are highly trained and can offer you advice on debt management, budgeting and the use of consumer credit. Most offer one-on-one counseling, workshops and educational materials to help you find and carry out a plan that fits your situation.
Credit counselors will try to find you the best solution for eliminating debt on your own through budgetary and saving strategies. If you can’t eliminate your debt through these means, they can help you enroll in a debt management program in which the credit counseling agency mediates the relationship between you and your creditors. They will help you set up a repayment plan that fits your needs as well as negotiate to reduce or eliminate interest charges.
How To Find a Credit Counselor
Before you choose a credit counselor, it is important to do some research to make sure you are going to get the most out of the service. The first thing you should determine is what kind of credit service you are choosing. There are two types of credit counseling services: for-profit and non-profit. For-profit companies sell the consumer a product like a debt consolidation loan or levy high fees for services.
Non-profit agencies, on the other hand, are supported through grant money provided by credit card companies to help their customers get out of debt. This means that in most cases, when you use a non-profit credit counseling service to help with your financial goals, you can receive your debt consultation for free while debt management programs do charge a nominal account maintenance fee.
Because of state regulatory fees and operational costs, non-profit credit counseling services do charge fees for debt management services.
If budgeting troubles or financial emergencies like medical issues, divorce and unplanned major home repairs have left you struggling with debt, you may need help getting back on your feet. Reach out to a credit counselor at an agency like CreditGUARD who will work with you to set up a budget and payment plan to resolve your debt and help you plan for better financial health.
CreditGUARD is a 5-star rated nonprofit credit counseling and debt management agency.
If you’re currently facing an overwhelming debt situation, you are not alone. CreditGUARD has a non-profit debt consolidation program that helps you with getting out of debt quicker and making one easy monthly payment. Learn more today when you speak to one of our certified credit counselors- call us at 800-500-6489.