It may not be surprising to anyone who has stressed about money before that research shows a significant link between financial struggles and poor mental health. Not having enough money, owing money, and the inflation and interest rates that are still high definitely don’t help reduce anxiety. But as they say, knowledge is power, and understanding the resources available to you can help you find the right options for you. For instance, non-profit credit counseling agencies provide free to low-cost services that can help if you’re struggling.
To better understand what a nonprofit debt management organization can do for you, read on.
Credit Counseling
When you meet with a certified credit counselor at a nonprofit credit counseling agency, they can help you create or modify a budget, provide financial literacy education, and help you with your long-term goals. If you’re struggling with debt, they can also help you come up with a plan of attack.
Debt Management Programs (DMP)
Enrolling in a debt management program (DMP) through a nonprofit credit counseling agency allows your counselor to work directly with your lenders on your behalf. They will consolidate your credit card debts into one simple monthly payment that fits your budget and negotiate to reduce your interest rates (sometimes to as low as 6%–10%), significantly lowering the total amount you'll pay over time. Most DMPs are designed to help you become completely debt-free within three to five years, giving you a realistic goal and a light at the end of the tunnel.
Student Loan Counseling
From helping you better understand the difference between a federal and a private one, to working on a plan to tackle student loan debt, your student loan counselor can help you plan for repayment and better understand your options.
Bankruptcy Counseling
Bankruptcy is typically a last resort, which is why meeting with a certified credit counselor before making any decisions is such an important first step. A bankruptcy counselor can walk you through all of your options and help you determine the right path forward. If bankruptcy is ultimately the best choice for your situation, they will provide the guidance and support you need to recover and rebuild your finances after filing.
Start Now With the Virtual Counselor Tool
Not quite ready to speak with a counselor, but want to explore your options? RethinkingDebt offers a free virtual counselor tool that lets you take the first step on your own. Simply enter your debt information to see how much you could potentially save through a debt management plan, giving you an easy way to start your journey toward financial wellness.