How Credit Counseling Can Help You Manage Your Debt

Written by Banks Editorial Team
2 min. read
Written by Banks Editorial Team
2 min. read

Credit counseling may be an option for you to help with managing your debt. Dealing with debt is not straightforward: it requires balancing your current financial needs while ensuring your future isn’t compromised by mounting bills. There are many debt management options out there, but some are scams. Working with a credit counselor will walk you through your options and help you achieve long-term financial health.

Credit Counseling

Asking for help is not always easy

Many people are nervous about seeing a debt counselor: talking about your financial situation isn’t always easy.

Very few people discuss their debts openly. This is because talking about money is often seen as rude, and we might feel embarrassed to admit that our financial situation isn’t great. Truthfully, though, many people struggle with debt and you’re not alone.

The idea of examining and sharing details of your financial situation, especially after a long time, can be daunting.

But ultimately, this would benefit you in the long-run, saving you a lot of money and stress. By going through the effort of working with a professional credit counselor sooner rather than later you can save yourself a lot of money and stress.

What does a credit counselor do?

A credit counselor can help you work through multiple complex decisions. For example, they can help you decide whether you should consider debt consolidation or debt settlement. Debt consolidation can be a good debt management strategy. A credit counselor will accurately assess your financial situation and determine if it’s the best choice for you.

If you’re unsure how your credit rating will be affected by debt consolidation, then it’s best to speak to a credit counselor. If you’re considering any kind of debt settlement it is important to book an appointment with a credit counselor. Debt settlement will affect your credit rating so it’s best to see if this can be avoided.

Unfortunately, there are many scams and poorly-run debt settlement companies that appear legitimate. Credit counseling will help you decide which debt settlement company to use.

Have you been investing in your retirement fund?

Currently, being unable to save for your retirement might not seem as pressing as struggling with debt. However, it is one of the signs that you need to speak to a credit counselor.

As life expectancy increases it is increasingly important to have a good retirement fund to see you through your golden years.

Not saving enough for your retirement now means that you’d need to fork out more in the future to put away the same amount of money. Add in inflation and the number grows.

A credit counselor will look at your financial situation in order to determine how you can start securing your financial future.

How to find the right credit counselor for you

It’s important to take the time in finding the best credit counselor for you. Reputable credit counseling agencies will have free first-time consultations, as well as educational information. Book a session with a few different agencies to find the best counselor for you.

Unfortunately, there are scam agencies out there who make grand promises and have high fees. Be skeptical if an agency is for-profit and requires you to pay a fee before giving you any information.

Start by looking for non-profit agencies that are members of the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA). Alternatively, look at the Department of Justice’s list of approved credit counseling agencies.

Being in debt is difficult because it affects more than just your finances. Fortunately, when you use a credit counselor, you have a source of support and advice. Addressing your debt situation with the help of a credit counselor is the first step towards financial health and peace of mind.

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