Many families struggle with debt, but they often don’t know how to go about getting the help with debt that they need. Debt counseling, also called credit counseling or credit management counseling, is often provided by non-profit organizations dedicated to helping families balance their budgets and build solid financial foundations for their future.
How Debt Counseling Works
Debt counseling involves sitting down or getting on the phone with a professional and going over your financial situation. Generally this includes your budget, five-year financial plan (if you have one), debt profile, investment strategy and savings plan. The goal is to identify areas where you can save more money, put more money toward reducing your debts as part of a debt management plan, and make smarter decisions about your debts. A debt counselor may also give you tips on how you can take advantage of assistance programs to create more space in your budget for savings.
Many debt counselors are also debt consolidation providers, like Credit Guard of America. Many consumers can benefit from consolidating their debts. It is the sort of long-term tactic that could end up saving you thousands of dollars, especially if you carry a lot of high-interest debts. Your debt counselor will help you determine if debt consolidation is a smart move for you or if you can just raise the amount of money you need pay towards your debts every month.
Once your budget is lean and tight, your debt counselor will talk with you about your financial future. Money is almost always tied up in dreams or visions for one’s family. For instance, homeownership, college and retirement are all important events that you need to save money for. Certain practices can help you improve your credit score to make those goals easier to achieve; your debt counselor will go over these with you.
Where to Find a Debt Counselor
There are many different credit and debt counseling organizations available to people across the country. Some counselors work as individuals out of a private office while others work with non-profit agencies in communities throughout the country. Still others work at for-profit business organizations. You may be able to find debt counseling online, over the phone or in person, depending on your preference. So why not look into a debt counseling service today?