Getting Out of Debt
How Credit Counseling Can Help Identify Your Options

Some think of Credit Counseling being much like Debt Management or Debt Consolidation, but it’s far more than that. Credit Counseling is about educating you, making informed decisions, planning for the future, and having a plan specifically based on your financial situation.

Here is what to expect when calling upon a credit counselor.

Step 1:  During your first call you should feel that you are speaking with a highly trained and certified consumer credit counselor.  You should be asked a series of questions in order to identify the root cause of your financial distress. Counselors want to ensure that they have a thorough understanding of the circumstances that have caused this financial burden so that they may provide a customized counseling session that’s unique to your personal situation.  The more information the better and remember all this information is kept strictly confidential.

Step 2:  Next, your counselor should conduct a financial analysis usually done by completing a monthly budget. This budget will provide an insight as to exactly how much money you are spending each month versus your total monthly household income. In addition to the budgeting assistance some companies can also obtain a portion of your credit report, which is something a lot of credit counseling agencies cannot do so its important while doing research to find this out because then you don’t need as much paperwork in front of you when making the call to the counselor.  It also makes it easier, if you don’t have old paperwork, because a company that has the ability to pull up a portion of your records might be able to pull up paperwork that you don’t have.  By viewing our credit report the counselor can verify specific creditor information and cross reference it with your personalized monthly spending plan. With this knowledge and a comprehensive understanding of your financial situation, you and the counselor can begin to find the right solution for you.

Step 3:  The third step in the counseling process is to identify the appropriate solution for your specific financial situation. Its good to have a variety of programs intended to aid individuals in eliminating their debt and achieving a financially stable life because everyone who calls a credit counselor isn’t going to be in the same exact situation so its better to have a variety of options to choose from to cater to specific needs. Throughout your counseling session, you should be advised of the company’s many resources which, one or more should effectively provide the financial relief you need.

Step 4:  Once the solution has been identified, you should feel comfortable contacting your counselor who should be there to continue educating you as well as counseling you to ensure that the solution chosen is working effectively. The counselor you speak with first, who knows you and your situation, should be considered your own personal counselor where you can call on them opposed to having to share you story with another counselor.  Let your counselor be your main point of contact, if any questions or concerns arise along the way.

Now that you know the steps to credit counseling, you should feel comfortable calling upon a credit counseling company if you are having financial troubles.  If you feel you might need help, try calling on a counselor just for some guidance, and remember you can simply talk to a counselor for advice, you don’t need to commit to anything.  Non-profit agencies are great to consider because you know they want to help you with no other intentions while on the line.