Credit counseling can be a good way to get yourself back on track financially. Counseling gives you a chance to see how much you owe, how to pay it back and how to keep yourself from falling into the same circumstances in the future.
Credit counseling has downsides, too. Certain companies are not as great as they should be, and they can cost you more money in the end.
So, should you try credit counseling?
It all depends on your situation. If you’re struggling with debt and don’t feel that bankruptcy is on the table yet, then consider talking to a credit counseling agency or your attorney about how to reduce your debt load and improve your finances.
Typically, credit counseling is free. So, if a company tries to charge you, just know that it isn’t usual to charge for these services. Counseling is usually offered through nonprofit financial education organizations.
What is credit counseling?
During credit counseling, a counselor helps you review your household budget, your debt and your credit reports. It also helps you look at your money goals and how to achieve them.
The counselor works with you to improve your finances, which can include offering you different tools or resources to get back into control.
Is credit counseling right for everyone?
Getting counseling is fine. In fact, your attorney could help you look over your finances and help you determine how to move forward, too. The problem only happens when the wrong solutions are pushed onto people, forcing them into situations where they end up paying more or don’t see any difference in their financial situation. If you’re considering counseling, it may be a good idea to start by speaking with your attorney.