Credit counseling is just one of the terms that you need to remember if you want to manage your debt properly. The truth of the matter is there are just too many terms to remember when it comes to debt management. Debt consolidation, debt counseling, credit scores, and debt settlement are all different rungs on a very tightly packed industry. It can also be hard to delineate between which is which and what is what. One such term, credit counseling, refers to the act of receiving guidance as it relates to your credit and debt. It is something that should be done by a Certified Credit Counselor.
Credit Counseling Program
This usually means having a budget counseling session, which lasts anywhere between 45 minutes and an hour. During that time, your Counselor will look at your finances. He or she will also figure out what needs to be done to put you back on solid financial footing. If it turns out that you are suffering from a serious debt, you may qualify for a Debt Repayment plan with your existing creditors (aka a debt consolidation program). If that’s the case, you’ll have the chance to close all your accounts you want to include on the plan. You can then make one set payment throughout the term of the program.
It’s important to note that not everyone qualifies for a debt repayment plan. If your current interest rates are below 10%, it’s likely that you won’t have enough of an interest rate reduction. At least enough to justify the paying the fees associated with a plan. Whether or not that’s the case is something you can easily figure out by filling out a form on our site. A certified credit counselor will contact you within 24 hours to speak with you.