Credit Counseling

Credit Counseling

Credit Counseling is multi step process that is used to help individual debtors through education, budgeting and the use of a variety of tools with the goal to reduce and ultimately eliminate debt. Credit counseling services are most often performed by a Certified Credit Counselor employed by a non-profit credit counseling agency. Credit counseling agencies have relationships with creditors and act on behalf of a debtor to resolve and ultimately eliminate unmanageable debts.  Credit counseling agencies have been assisting consumers since the 1950's and remain committed to helping consumers overcome financial obstacles to this day. 

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Counselors are certified and trained in consumer credit, money and debt management, and budgeting.  An initial counseling session typically lasts an hour, with subsequent sessions undertaken to further evaluate the most prudent course of action. A certified credit counselor will also review your credit report and help you understand your score and ways to improve and or maintain your credit. Regulations on credit counseling and credit counseling agencies varies state by state. 

As a remedy to help control unmanageable debts a certified credit counselor may suggest a debt management plan(DMP).  A DMP will combine your unsecured debts into one affordable lower interest payment. A monthly payment calculated by a certified credit counselor is provided to each client. Once you accept your DMP, you are required to make a monthly deposit to the credit counseling agency each month on or before your assigned due date. Your payment is promptly disbursed to your creditors according to the plan set forth by your certified credit counselor. As your creditors receive their payments they will apply them to your account and send your a monthly statement. Your certified credit counselor will provide you with the duration of monthly payments you can expect to remit on your debt management plan.   

To learn more about our credit counselor services contact our office today at 1-800-498-0766 ext 190 and speak with a certified credit counselor or complete our online form and request to be contacted. 

 

 

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The successful implementation and monthly maintenance of a debt management program is a shared responsibility. You want to ensure that the agency you share this responsibility with will support your program professionally and efficiently.