How can Credit Counseling Help You – 4 Steps
Debt is often compared to quicksand. Easy to get trapped into, difficult to get out of. Very often, you don’t realize that you’re in debt until you’re neck deep in it. This is where a non-profit credit counselor can help you out. There’s nothing to be embarrassed about seeking the help of a credit counseling agency.
Now, you may be wondering how a person in debt could afford the services of a credit counselor. Here’s where nonprofit credit counseling agencies come into play. Here’s a run through of the benefits of approaching a non-profit debt counselor.
- They offer you a free session
Most nonprofit counselors offer you a free session to get to know your finances. These sessions can extend anywhere from one hour to half a day. They review your debts and help you find the right approach to break free from your bills and other payments.
Apart from working out immediate solutions, they approach your financial situation in a holistic way, helping you relate to the big picture.
- They help you to understand the reality of your Financial Situation
It’s often painful to look at your poor finances under the scrutiny of a criticizing eye. Experts in Credit Counseling programs are trained not to make you feel bad. Rather, they help you take a reality check when it comes to your finances.
The first step to breaking free from your debts is to realize that you’re in debt and a credit counselor does exactly this.
- Devise a Budget Plan for you
There’s no point in trying to regain control over your finances if you can’t track your spending. Creating a budget plan for you is a crucial part of nonprofit debt credit counseling. The counselor tracks all your expenditure and gives recommendations on what’s needed and what has to be curtailed.
- They devise a Debt Management Plan for you
Debt Management Plan or DMP, in short, is a strategy where your credit counselor negotiates with your creditors to devise a plan to repay your outstanding payments. Credit counseling service will help you pay off all your debts systematically within a period of three to five years.
Benefits of a DMP
- Get you lower interest rates on your existing debts
- Stops late penalties and other over-the-limit fees
- Freezes your credit cards till your debts are cleared
- They don’t charge you any Hidden Fees
Any nonprofit consumer credit counseling agency will let you know their fees upfront. Usually, the first session is free and even after that, the costs are quite minimal. Even if you can’t afford to pay them, they are ready to work with you. They do not deny their services to customers just because they are unable to pay.
The road to financial freedom is arduous and long. However, with the help of non-profit credit counseling, you can get back your finances on track and be freed from your debts. Get started today.
