"Nothing in life is free." It’s a saying that anyone who has experienced debt can deeply relate to. But the truth is, most people will experience some degree of financial debt at one point in their life. Determining when you need help is personal, but if you find that debt is preventing you from living your life and creating anxiety and complications, making an appointment with a credit counselor can help you regain a sense of control.
Q: What should you expect from credit counseling?
A: When you meet with a certified credit counselor, either by phone, video, or in-person, they can provide much-needed budgeting advice while helping you to build your own budget or better navigate an already established one. Before your appointment, you’ll want to make sure that you have billing statements, household expenses, and your monthly income readily available so that your counselor can go over everything with you.
If there’s any confusion over your credit reports or fees on billing statements, your counselor can also help you better understand them.
Q: How else can credit counselors help you?
A: From workshops on budgeting to first-time home buyers programs, your counselor can help guide you to upcoming workshops and events, as well as provide you with literature than can help you become a more financially savvy individual.
Q: What is the meaning of debt management?
A: A debt management plan is a program that credit counseling agencies can enroll you in if you qualify. If your counselor advises you that a debt management plan may be in your best interest, creditors creditors will typically reduce your interest rate and consolidate your loans into one affordable monthly payment designed to be paid off in three to five years.
By taking part in a debt management program, you’ll be showing your creditors you’re serious about paying off your debt and should over time. On average, those who complete a debt management program typically see an average increase in their credit score by about 80 points! Most importantly, you’ll find yourself in a financially healthier state of being so that you can live your life more fully.
Benefits of Debt Management
One monthly payment | lower interest rates | no more debt collector calls | improved credit score