Consumer Credit Counseling
There are consumer credit counseling options that allow for millions of Americans in debt, a way to retake control of their financial future. How? By combining financial education, assessment, advice, goals and plan of action. Since Credit is the ability to borrow money, while Debt is the result of borrowing money, they are two sides of the same coin. The other side of consumer credit counseling is consumer debt counseling, The debt counseling often results in a Debt Management Plan to centralize control and pay down the consumer debt. Consumer credit counseling can offer a consumer various additional benefits as well. If you’re just starting out and are struggling to manage credit (excessive debt), consumer credit counseling options can result in a major improvement in your future life.
Here are an overview of consumer credit counseling with their potential benefits:
What Is Consumer Credit Counseling?
Consumer credit counseling (the other side of debt counseling) is a process via a third-party advisor or agency to provide information, guidance and support on budgeting, credit, money and debt management. Often this counseling is performed at no or minimal cost to the consumer. The goal of consumer credit counseling is to help you improve your financial situation by avoiding excessive debt that you cannot comfortable maintain.
Here are the basic things to know about consumer credit counseling:
- Generally Offered By Non-Profit (Minimal Cost) Organizations.
- No Eligibility Requirements Other Than Needing Debt Relief.
- Available Via Telephone, Appointment Or Online.
- Generally Does Not Have Minimum Debt Amount Requirement.
- Is Not Reflected In Your Credit Score.
- Initial Counseling Session Takes 0.5 – 1.5 Hours.
Consumer Credit Counseling Sounds Painless
It is somewhat like a visit to the dentist. It depends on your financial health. Consumer credit counseling is simple in principle. You borrowed money from creditors and now have debts that need to be serviced (paid back) on a consistent basis. Since you are likely experiencing problems paying your debts, you have a debt management issue. Consumer credit counseling will explain why you got to your current financial state and what are the options available to get you to a better financial place.
consumer budget counseling
Pros: This an is overview of your financial life, including income, expenses and financial goals. Afterwards, you and the counselor may decide you could benefit from additional counseling.
Cons: Your personal time spent gathering your personal financial information to review with the credit counselor. You need to understand how and why you are in your financial state.
Here are the types of things (often sensitive in nature) that you must be open to discussing with your credit counselor. Why? Your credit counselor can’t help you get out of debt unless they know how you got there in the first place.
- Personal Information (Name | Contact Info | Marital Status)
- Sources Of Income
- Expenses Related to Housing | Food | Transportation | Insurance | Medical | Misc
- Monthly Savings | Retirement
- Unsecured Creditor Information (Balances | Monthly Payments | Interest Rates)
- Other Loans (Student | Medical | Personal)
- What You Hope To Accomplish In The Counseling Session
Consumer Credit Counseling Reality
- Impartial Financial Advice From A Nonprofit Organization.
- Financial Counselors Are Trained & Experienced.
- Low Cost.
- You May Take Advantage Of A Debt Management Program.
- Budgeting Advice Can Help Reduce Your Expenses.
Simply put, when you consider a consumer credit counseling option you know you have a problem with managing credit. The other side of the coin is you have a problem paying your debts. You may not have a clear understanding as to how you got here, but you know you want to make a change.
To do that, you have to change the way you view your life and the need for debt. The solution isn’t a magical, quick fix. They don’t exist. But consumer credit counseling is a good first step.
An overview of consumer credit counseling and benefits are presented. These include 1) What Is Consumer Credit Counseling?; 2) Is It Painless?; 3) What Topics Will Be Discussed?; and 4) What Are The Benefits and The Reality Of Consumer Credit Counseling?
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