Whether you're struggling to pay down debt, create a budget that works for your household, or simply gain a better understanding of how to manage your finances, credit counseling services may be just what you need.
Credit Counseling Explained
Credit counseling agencies are typically nonprofit agencies that provide services for free that can help you manage your finances more efficiently through a tailored budget. They provide the tools and education that can help you make more informed decisions about your money while also helping you get out of debt.
How Can Credit Counseling Benefit You?
- Professional Expertise: We get it, budgeting isn’t always the funnest activity—but it’s necessary to keep your finances on track. Working with a certified credit counselor from a nonprofit credit counseling agency ensures you’re getting guidance from a professional who has the experience and knowledge to help you get it right.
- Financial Education: Nonprofit credit counseling agencies are required to provide free financial education. Working with a credit counselor can equip you with tools and knowledge to understand your financial options better.
- Interest Rate & Fee Reductions: If you’re dealing with a lot of debt, your credit counselor may suggest enrolling in a debt management plan (DMP). This allows them to work with your lenders to reduce your interest rate and potentially waive late fees.
- Streamlining Repayment: Your counselors will also negotiate repayment into one consolidated and affordable payment, so you’re not worrying about multiple loans every month.
- Stop Creditor Calls: Collections attempts can feel like harassment, especially when they’re overly aggressive. Enrolling in a DMP should help reduce phone calls and letters.
- Strengthening Your Credit: Through credit counseling, you can regain control over your finances, which will ultimately help you boost your credit score as you gain back financial health.
Finding a Reputable Credit Counseling Agency
Rethinking Debt has long been affiliated with the National Foundation for Credit Counseling (NFCC), the country's oldest and largest network of nonprofit agencies providing credit counseling, debt consolidation, and financial education services.
Bottom Line
Whether you're hoping to get your debt under control or build better financial habits, credit counseling can provide the expertise and guidance you need to set you on a path toward better financial health.