Credit Counseling Information

Credit Counseling Services

If you are struggling to manage your debts, then credit counseling can help you find a way out. Federal law now mandates that all bankruptcy candidates receive credit counseling before filing. However, credit counseling services can also help you long before bankruptcy becomes a possibility.

Although most people think of credit counseling as debt management or debt settlement, reputable credit counselors actually offer a wide range of solutions based on your specific situation. They will review your finances, advise you about budgeting, and devise a program to help you get out of debt.

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Credit Counseling Success Stories

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Credit Counseling Questions
  • When do I need credit or debt counseling?
    If you have fallen behind on your debts, avoid opening the mail, or are receiving collection calls, then you should consider credit counseling. You should also consider it if you have been turned down for a loan due to your credit score or debt load.
  • Will it hurt my credit?
    Credit counseling will appear on your credit report, but it is not factored into your credit score. Lenders and creditors may be hesitant to issue new credit if the credit counseling is recent, but a bankruptcy or foreclosure will do far more damage.
  • What does it cost?
    The cost varies depending on the services you need. Most debt management plans include fees in the monthly payments or a one-time setup fee. The initial consultation should be free or very low cost -- usually less than $50. Look for services that offer free educational materials, such as budgeting forms. If the fees seem unreasonable, investigate other services until you find one that works for you.
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