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Credit Counseling: What is it?

Have you ever found yourself short when paying the monthly bills? Has your credit card company recently raised your minimum payment and/or raised your interest rate sky high (watch for it, it’s coming like inflation)? Have you found yourself making regularly healthy payments to the credit card company only to see that the balance just keeps growing, and growing? If so, you may do not know who to turn to. We do.  

This is where free credit counseling steps in. Free credit counseling is available through non-profit debt help companies like ours. 

Let’s dive into the details of credit counseling, including what it is and what typically happens in a credit counseling session.  

Free Credit Counseling

So…What is Credit Counseling?

Credit counseling is a professional, confidential conversation that assists individuals in managing debt effectively. Furthermore, credit counseling includes a comprehensive analysis of assets, budgets, credit card debts, personal loans, student loans, and other debts, aka “your financial situation.” 

Credit counselors are professionally trained and certified in debt management, personal finances and budgeting. In credit counseling, counselors will analyze your current situation and negotiate a more favorable repayment schedule of your unsecured debts. Most creditors lower interest rates, lower payments, and re-age accounts. Re-age means make the account “current” again if it is past due or paid late. 

What Happens During Free Credit Counseling?

Ultimately, credit counseling is a means to find a solution to a financial hardship. If you’re not sure if you are having a hardship, ask yourself if you’re having a problem paying high interest or high credit card payments. If so, you probably have a hardship.  

DebtHelper offers free credit counseling for those seeking help paying their credit cards. Sessions take around 20 minutes. A free credit counseling session is most commonly completed over the phone. 

If you’re wondering how credit counseling works, here’s a breakdown of what goes on during a free counseling session. 

Step 1. Talk About You

The counselor will first ask for your general information, such as: your name, where you live, Your cell phone number, and other contact details. 

Step 2. Talk about Your Financial Situation.

After getting your general information, the counselor will ask you about your personal financial situation. For this, you’ll need to provide them with the details about the following: 

  • Your current income (or unemployment benefits) 
  • Your current credit card payments 
  • The interest rates on what you’re paying (card statements) 
  • Monthly expenses and what you owe (car loans, etc.) 

You must provide accurate information to your credit counselor. The best way they can help is if they are equipped with complete and factual details. 

Step 3. Check Your Credit

Once the credit counselor has all your information, they will ask to run a credit check on you. Your credit report will help him not miss anything or they can help you spot errors. Plus, it helps them further analyze your financial information so that they can recommend the best solution possible based on your current situation. 

Don’t worry. Credit checks performed by DebtHelper Counselors are always ‘soft credit checks’ and will not impact your credit score.  

Step 4. Offer You Practical Financial Solutions

Now that they have everything needed, your counselor can provide suggestions for improving your financial condition. Depending on how they analyze your current financial situation, they may recommend any of the following: 

  • Paying your finances on your own 
  • A Debt Management Plan (Interest savings) 
  • Balance Transfers or other Options depending on your situation 

They are less likely to recommend the alternatives of Debt Settlement or Bankruptcy as these options typically harm your credit for years. 

The counselor will discuss what each solution entails and how it can benefit you. This way, you’ll be able to make a more informed decision about how you can deal with your finances going forward 

Young man get Free Credit Counseling consultation

Finally! Let’s Get Your Free Credit Counseling Done Today.

If you’re interested in free credit counseling, DebtHelper.com is an IRS-approved 501(c)3 non-profit Florida Corporation that educates, advises, and empowers individuals to handle debt, credit, and more. DebtHelper’s team of multilingual, multinational, and certified credit counselors is ready to help you realize your financial goals. Contact us today to schedule an appointment.    

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