Why You Should Choose Credit Counseling

For people that find themselves in a debt pit, consumer credit counseling can assist in putting them back on track to manage their debt and ultimately be debt free.  Don’t wait for your debts to take over your life, here is why you should choose credit counseling.

Credit Counseling Services

Consumer credit counseling agencies provide 5 main services with the goal of helping manage debt. These are:

Budgeting –  This is usually the initial session which last around an hour. The topic covered is mostly about your financial life and discusses your current income, expenses and what financial objectives you may have. At the end of the meeting, you and the counselor could determine whether or not you can benefit from more counseling.

Debt Management Plan – in this session, the certified counselor will consolidate all your unsecured debts into one monthly payment payable in three to five years. The deal also calls for lower interest rates on your behalf.

Counseling for Bankruptcy – this entails the process prior to filing and another before the debts are settled.

Student Loan Counseling –  options on how to repay the loan are talked about and the counselor may even include talks with the loan issuers.

Housing Counseling – if you are having trouble making your rental payments or you are buying a home for the first time, there are a variety of counseling options for you so could gain a better understanding on the costs.

For expert credit counseling in the Twin Cities area we recommend Consumer Credit of Minnesota. They offer all the services above and are a non-profit organization.

Things to Look for in a Credit Counseling Agency

Certification – Check with the Better Business Bureau to verify the integrity of the agency you are considering.  If they are a nonprofit agency, they should be a member of reputable organizations such as the National Foundation for Credit Counseling and the Financial Counseling Association of America.

Access – Ask yourself how you want to avail of the services like over the Internet, in person or over the phone.

Cost – prices are different depending on the agency and state. Make sure that you have a full understanding of the overall cost.

Credit counseling is a good way to help you get out of debt the right way. It will arm you with a variety of options to achieve your financial goals.

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