Thursday, November 6, 2008

What Does Consumer Credit Counseling Do?

Whether due to financial mismanagement or events such as job loss or medical emergency, debt can quickly spin out of control. Recognizing that a problem exists may provide just the jump start you need to seek help and address your debt and credit issues. Consumer credit counseling represents one option for those looking to get back on track.

Counseling Goals

    The goals of consumer credit counseling include helping individuals and families develop a workable budget. This includes taking a thorough look at all debt and working together to get debt and the use of credit under control. For some consumers, a simple strategy and some gentle guidance can help set things straight. For others, a total overhaul and long-term plan will be necessary. During the first session, a qualified credit counselor should go over your budget and provide you with a thorough review of your situation. During this session he should also provide you with any specific options relevant to your situation, such as debt management programs or budget counseling.

Services

    Specifically, consumer credit counselors should work to help you get debt under control. They do this by offering various programs and services that they tailor to each client. Credit counselors will provide you with educational materials and point you toward classes or seminars specific to your situation. Consumer credit counseling services can also provide guidance to those looking for help saving for retirement or college education expenses for their children.

Staying on Track

    Consumer credit counselors may recommend follow-up sessions to help keep your financial plan on track. These follow-up sessions will go over any new concerns or changes to your financial status, such as reductions or increases in income. They will also help you update your budget and set new goals. Continual review of your budget and plans related to handling credit and debt responsibly can help you stay on track. Use this information wisely and choose to learn from past mistakes to help rebuild your credit and secure your financial future.

Other Considerations

    Credit counseling services may offer an initial visit for free and then charge for follow-up visits or special services, such as debt management programs. Make sure to thoroughly research several consumer credit counseling agencies before you take the plunge. Ask for brochures and any material related to fee schedules before making an appointment. Review all literature and make sure to check with your state's Attorney General or consumer protection agency before signing up or paying for any services related to credit counseling.

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