Most people have debt in one way or another, but there’s a difference between healthy debt and struggling to make payments. If you’re one of the millions of Americans finding it hard to make payments on your bills, credit counseling may be a good option for you pursue.
What to Expect
When you make an appointment with a credit counselor, either by phone, video, or in person, you’ll want to have your household finances available, so your counselor can review your monthly expenses.
During your credit counseling session, your counselor will go over your finances, review your credit report, and help you create a budget. They will also provide you with educational materials and information about workshops to further your financial literacy and help you manage your financial life more efficiently. By the end of your session, your counselor will recommend some options which may include enrolling in a debt management program (DMP).
What Is a Debt Management Program (DMP)?
Enrolling in a debt management program allows your counselor to work with your lenders/creditors to consolidate your unsecured debt into one affordable monthly payment, reduce your interest rate, and set you on a path to pay off your unsecured debt in three to five years.
In addition to budget and credit counseling, credit counseling organizations typically offer the following services as well:
- Bankruptcy counseling: Making the decision to file for bankruptcy is a big one. A bankruptcy counselor can review your financial situation and provide you with the information needed to help make sure you make the right decision on whether or not to file for bankruptcy, as well as provide the required pre-filing counseling and pre-discharge education.
- Housing Counseling: For first-time home buyers or anyone struggling to preserve their home, housing counselors at a credit counseling organization can help you make a financial plan, so you can be secure in your investment.
No one wants to struggle with debt, so seeking help from a credit counseling organization can help set you on the right financial path.
Debt Management Plan: Enroll Today!
One monthly payment | lower interest rates | no more debt collector calls | improved credit score