Credit counseling is a process that helps individuals and families manage their debt and improve their financial stability. Credit counseling agencies provide guidance and assistance to help clients:
1. Assess their financial situation
2. Create a budget and debt management plan
3. Negotiate with creditors to reduce interest rates, fees, and payments
4. Consolidate debts into a single, manageable payment
5. Develop strategies to avoid future debt
Credit counseling agencies may also offer:
1. Financial education and literacy programs
2. Debt management plans (DMPs)
3. Credit report review and correction
4. Budgeting and savings guidance
5. Housing counseling and foreclosure prevention
The goal of credit counseling is to help individuals and families:
1. Reduce debt
2. Improve credit scores
3. Increase financial stability
4. Achieve long-term financial wellness
Credit counseling agencies are typically non-profit organizations and are certified by the National Foundation for Credit Counseling (NFCC).
