For those in debt, credit counselling can often offer a vital lifeline. Non-profit credit counselling services use a variety of strategies to overcome the obstacles that debt can present. These strategies include help with managing your budget, credit score improvement methods, and strategies for successful debt management. Please continue reading to learn more about credit counselling and whether it is the right solution for you.
When Is Credit Counselling Appropriate?
Credit counselling works best for those who have debt levels that can still realistically be paid off, which usually means low or medium levels of debt relative to your income and assets. You may find yourself in a situation where you’re still making your monthly debt payments, but you suddenly find that these payments are becoming unmanageable. That’s where a credit counselor can step in to help you make the right changes in your financial life to ensure the debt doesn’t become uncontrollable.
However, credit counselling offers important educational lessons for nearly anyone, and can help individuals or even businesses successfully budget and spend their money
How Credit Counselling Helps You Manage Debt
A credit counselor will sit down with you and review your income, assets, debt levels, and other pertinent information. They will also analyze your current spending patterns. Based on this information, they will help determine how much you can actually put towards your monthly bills with a Debt Management Plan.
Your credit counselor can also offer you credit consolidation services, helping you package your various debt into one loan, which will help you better focus your efforts to pay off your debt.
The counselor serves as a mediator throughout the repayment process. Your credit counselor can contact your creditors on your behalf if you authorize it. Creditors will often agree to reduced interest payments or provide more time to pay off debt, as they also have an interest in obtaining the money you owe.
Your credit counselor will receive your payments each month and place them in a trust account, which will then be sent to your creditors. If you stick with the program, a credit counselor can provide you with a positive note, which will be entered into your credit profile.
Building A Long-Term Strategy
Paying off your creditors can sometimes be a long process. Credit counselors can provide you with the education and personal budgeting strategies to not only help you pay off your debt, but also help you avoid debt in the future.
Dana MacRae – Licensed Insolvency Trustee are happy to offer you free debt and credit counseling services. Call us for a free and confidential consultation at 1-800-665-9965. You’re under no obligation to accept our services, but you might just like what we offer you in your fight against debt.