About Certified Credit Counselor Training

When a consumer and a credit counselor work together, a partnership is created to improve the consumer's financial situation and establish firm financial success goals. Credit counselors must be specially trained to perform these services. Some states require that the credit counselors be licensed.

Programs

Among several programs that offer certification training for credit counselors are the Certified Personal Finance Counselor Program and the Credit Counselor Certification Program. The programs can last from a few weeks to several years, depending on the skill level and certification level you desire.

Continuing Education

Continuing education is required in most programs in order to keep certification current. Many employers will provide this training for its employees. However, should you decide to counsel on your own, you will have to find programs in your area to continue your education. Contacting your state's Department of Finance and Administration is the best way to find out about these programs.

Setting Goals

During training, credit counselors learn how to help consumers reach their financial goals by re-educating them in the areas of budgeting and money management. One way this is done is by providing them with educational materials. This starts by understanding the consumer's present financial situation and suggesting a strategic plan to reach an acceptable goal. Additionally, the counselor works closely with the consumer to keep the plan on track by offering alternatives to serious deviations.

Communication

Communication skills are extremely important for the success of the partnership, as counselors need to provide motivation, encouragement, advice and feedback. The credit counselor should be able to explain creditor actions to consumers, and to keep records of the consumer's progress. During training, you'll learn how to listen to the financial statements consumers make and learn how to explain your reasoning for the suggested course of action. For example, if a consumer "has to have" the latest fashions and has run up a large credit card bill, you may have to try to uncover the reason he feels that way. This is called active listening. You will then have to figure alternatives, such as setting a specific budget for clothing or selling old clothes to pay for new clothes.

Confidentiality Training

Law forbids credit counselors from discussing any consumer's financial situation with any person not directly involved in the partnership. This can get difficult sometimes if someone who is married comes to you alone for help and then the spouse calls for information. However, the training you receive should include instructions on how to handle a situation like that.