Life can already feel overwhelming. Add debt and financial stress to the mix, and it's easy to feel like you’re drowning. If you're trying to balance debt repayment and budgeting and finding it tough to manage, credit counseling may be able to help.
What Is Credit Counseling?
Credit counseling is provided by certified credit counselors who typically work at nonprofit credit counseling agencies. They can help you create a workable budget for your specific situation, manage your finances, provide educational resources on financial literacy, and help you get out of debt.
How Does Credit Counseling Benefit Me?
- Expert Guidance: Working with a credit counselor allows you to build a personalized budget with the help of a certified financial professional.
- Financial Literacy: Credit counselors help you build healthier spending habits and a stronger understanding of personal finance overall.
- Lower Interest Rates & Fees: If you pursue a debt management plan (DMP) through a certified credit counseling agency, credit counselors will negotiate with your lenders to reduce your interest rate and waive late fees.
- Repayment Simplified: Through a DMP, credit counselors help you consolidate your loans into one streamlined, affordable monthly payment.
- Collections Reprieve: Once you start working with a counselor and enroll in a DMP, you should see a reduction in collection calls and letters that make life that much more stressful.
- Credit Score Improvement: While just meeting with a counselor isn’t enough to raise your credit score, getting back on track financially will ultimately help your credit score recover. And it doesn’t cost you anything to start the conversation.
Where Can I Find a Certified Credit Counseling Agency?
Consumer Credit Counseling Services (CCCS) of Rochester is a long-standing member of the NFCC, which is the oldest and largest nonprofit organization providing credit counseling, debt consolidation services, and educational programs through its member agencies.
Bottom Line
If you've ever considered credit counseling, there's no better time than now to take that first step. Whether you're looking to build healthier financial habits, create a manageable budget, or get out of debt, credit counseling can offer the guidance and support to help you regain control of your finances.