While the services a credit counselor provides are straightforward, the role of a credit counselor can be critical for anyone who suffers from financial problems and is seeking a way out of a downward economical struggle.
What is a credit counselor? A credit counselor is a trained and certified professional who provides advice and education on how to budget your finances better.
What does a credit counselor do? During your appointment, a credit counselor will analyze your overall financial picture by looking at household income, monthly expenses, how much in credit cards and loans you have, and whether you have a budget. Credit counselors will also provide educational materials and workshops on financial management.
Once you’ve gone over everything, your counselor will help you understand your options, advise you on your next steps, and customize a plan that works for you. If your counselor recommends enrolling in a debt management program (DMP), they will advocate on your behalf to make your repayment possible. Through a DMP, your counselor will work with your lenders to consolidate your unsecured debt into one affordable monthly payment and negotiate a lower interest rate so that you can pay off your debt in three to five years.
What’s the outcome? Ultimately, a credit counselor can help you simplify the process of repayment and alleviate the burden of debt. If you’re consistent with repayment, you’ll become better at budgeting your finances, and, over time, see your credit score go up and your financial well-being grow.