What are Credit Counseling Services and How Do They Work
Credit Counseling is a process by which a certified credit counselor works with a consumer to evaluate their personal finances to determine if their financial situation can be improved through budgeting and better financial decisions. Specifically a credit counselor will evaluate your income (monthly pay) along with your debts such as credit cards, rent, mortgage, car and insurance bills. Taken together your debts and income will show if you are cash positive or cash negative, you spend more than, or spend less than, what you earn each month.
When you reach out to DebtGuru’s credit counseling services for Free credit counseling and advice we will first conduct a financial interview with you, which is essentially a listing of all your debts and income. We will then look at specifics about your debts such as credit card interest rates or late fees that may be resulting in negative cash flow. We will then provide you with our advice on how to best manage your income and debts. There may be simple changes in your budgeting and spending behavior that can put you back into a financially stable lifestyle. Or your negative cash flow may be severe enough that you may need relief directly from your creditors (the credit card companies Etc.). In these cases we may recommend you proceed with a Debt Management Program to gain relief and start a plan to becoming financially secure once again.
What Benefits do Credit Counseling Services Provide?
The most powerful benefit of Credit Counseling is KNOWLEDGE. As a Non-Profit credit counseling company, we have only one goal and that is to provide you with information and advice to get out of debt. By working with us credit counseling will help you put into clear terms how to end a cycle of debt and return to building a secure financial future. Our goal is provide you with only the type of relief that you need, this may include:
- A clear, realistic and achievable plan to get back on track.
- Reduction of interest on your debts (credit cards or unsecured loans).
- Reduction of monthly payments.
- Reduction or dismissal of late fees.
- Reduction or dismissal of Over-The-Limit fees on credit cards.
- The cessation of all collections activity for debts in your program.
Can Anyone Provide Credit Counseling Services?
A Certified Credit Counseling representative is a specific designation of a professional who has successfully completed a certification program to provide consultations and advice. True credit counseling services are NON-PROFIT, that is they do not earn a profit on the services that are provided. Credit Counseling Services are also regulated and licensed. So not anyone can provide certified credit counseling service unless they meet these specific criteria.
What Do Credit Counseling Services Cost?
Our Credit Counseling Service provides evaluations, consultations and advice for free. You are not speaking with a sales person, but a certified counselor so you will never be pressured or under any obligation. Simple, free, honest and professional credit and debt advice.
How Do I get My Free Credit Counseling Session?
You only need to call us when you have at least 15 minutes to discuss your situation. We are happy to spend more time to answer your questions, however 15 minutes is generally the minimum amount of time we would need to provide meaningful information to you.