How Can Credit Counseling Help Me?
When is it the right time to seek the help of a professional concerning any financial issues you might be having? When you can’t quite seem to take back control of your debt and you need a solution tailored to your unique needs and that won’t damage your credit score.
Unfortunately (or fortunately, depending on how you look at it), there are many different types of debt relief solutions for you to choose from. Finding out which type of solution will suit your needs depends largely on your own financial situation. What works well for you might be disastrous for someone else.
This is when the advice of an expert credit counselor can be extremely helpful and beneficial and can provide you peace of mind that you’re making the right choice for your needs.
What Does a Credit Counsellor Actually Do?
Working with a credit counselor is one of the easiest and most convenient ways of finding a solution to your debt problems. They’ll help you determine where you need the most help, provide you with a plan, and guide you through the process of putting the plan into action. Just like when a doctor tells you how to deal with your health issues, a credit counselor will provide you with the help you need to deal with the financial pains you might be having.
Assessing Your Financial Needs
These are the areas that your credit counselor will review to determine what type of financial aid you might need.
A credit counselor will review your budget to find out
- What your current income is
- How much debt you’re currently holding
- Any other financial obligations that are using up the money you could be paying your debt with
Want to learn how to maintain an effective budget? Read this.
A credit counselor will review your credit report to verify
- If you have any overdue debts and how long they’ve been overdue
- The health of your credit score
- And to see if you qualify for debt consolidation
If you have a financial portfolio, a credit counselor will verify
- If you have any available assets that can be liquidated
- If you have assets that need protection should you need to file for bankruptcy
Once your credit counselor has reviewed all of the above, they will be able to provide you with a solution to tackle your debt load based on your unique needs.
How do I Know if Credit Counseling is Right For me?
The Answer? When you’re unsure of which debt relief solution is right for you.
If you’re unsure of what to do or are looking for a second opinion about a decision you’ve already made, you should seek the advice of a professional credit counselor. Your first consultations will be free, so why not get the help you need? You have nothing to lose.
Credit Counseling Scams, What to Look Out For
- Firstly, verify that you have, in fact, chose a recognized credit counseling agency. The agency should be a non-profit and should be listed with the Better Business Bureau (BBB).
- Make sure the counselor you’re going to work with has all the necessary certification. Legitimate credit counselors have been trained and have the necessary know-how and skills needed to help their clients successfully deal with their financial issues. If the counselor is not certified, you will not be getting the opinion of a true expert.
- Beware of hidden fees. The FTC makes it illegal for credit counseling agencies to charge fees for consultations and once you enter a debt program, those fees are limited and regulated.