No matter what format you choose, you will need to provide some basic financial information to your counselor. This session can take place via telephone, online, or in-person, depending on the specific agency. The goal of the session is to take an inventory of your current financial circumstances and to discuss your goals moving forward. What Happens in a Credit Counseling Session?Ī credit counseling session provides you the opportunity to work one-on-one with a certified credit counselor. In this article, we will focus on the standalone service of credit counseling specifically. As a result, people sometimes refer to any service they receive from an agency as “credit counseling” even though credit counseling is actually a specific single service. For example, this occurs when someone enrolls in a DMP. Additionally, agencies often provide additional services, like debt management plans (DMP) or housing counseling.Ī credit counseling session is sometimes the first interaction that an individual has with a counseling agency, and that counseling may lead to another type of service that helps the individual. That may be because some credit counseling agencies sometimes use “credit counseling” in their official name (for example, an organization may use the name “Consumer Credit Counseling of,” plus a particular metropolitan area). Sometimes people will refer to credit counseling in a broad sense. But first, it is important to understand that you may hear the term “credit counseling” used differently. We will discuss credit counseling in much more detail-including exactly how a session works and how it can help you. This credit counseling service is typically provided by accredited nonprofit organizations and should be offered free of charge. Let’s take a closer look and clarify exactly what credit counseling is, how it works, and how it can help you.Ĭredit counseling is a service designed to help individuals make a plan for achieving their credit and financial goals through a review of their credit report and monthly budget. However, you may not know exactly what credit counseling is. For example, here are recommendations by the Federal Trade Commission (FTC), Clark Howard, and NerdWallet. Many experts agree that credit counseling is a safe and effective form of debt relief. That does not mean that every type of “debt relief” is bad, but instead it means that consumers must be aware of the important differences between different types of debt relief. It can be disorienting, and it is not always easy to know who you can trust for your debt repayment needs. You have probably seen ads for some of these services and heard the promises of various companies and debt repayment methods. Unfortunately, the debt relief industry-made up of companies that help consumers get out of debt-is plagued with misinformation and some business models that harm or confuse consumers.
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