What is Credit Counseling?
Credit counseling is a partial solution to your financial troubles. I understand the need to use counseling you can trust to solve your troubles.
Credit counseling is considered a partial solution because it does not reduce your financial troubles. Rather, it focuses on why you have arrived in debt and what you can do to reduce those burdens and stay out of trouble in the future. The thing is, if you do not know why you overspend or cannot stop the overspending it will be difficult to end your debt cycle. Debt counseling is designed to ensure you get out of financial trouble forever.
Credit counseling is going to focus on offering you debt relief. You will have to find out what makes you overspend or spend more than your income. Perhaps you have no income. In this case counseling is going to focus on helping you spend any savings or unemployment you receive without overspending it and getting further into debt. You may have a different problem. You have plenty of income, but you overspend constantly which means what income you make is no longer covering your burdens. In this case counseling is going to focus on why you feel the need to overspend.
Typically, when you go to credit counseling you are asked to explain your situation. You will need to show what expenses you have for the month, what incidentals might occur, and what the totals are that you owe on things like mortgages. You also have to provide the amount of income you have. All of this information is used for counseling. The counselor is going to look at this information to see if you overspend in any particular area or if you can reduce your spending in certain areas like restaurants. In this way debt consultation has the full picture and can target your issues.
Choosing a credit counseling agency correctly is imperative. If you go to the wrong company there is a chance that you might be scammed. This is where I come in. I have spent many years researching different companies whether they offer counseling, debt management, settlement, or negotiation. I study a company, vet them against high standards I have devised, and then review them for you. In this way you know you can trust any of the companies I have named for credit counseling services.
Even though I might vet a company that offers counseling, these companies may not work for you. It is based on your situation. More importantly, you have to be able to work with the person offering you the counseling. If you are not comfortable with the person meant to help you it will cause trouble for your situation. Obviously, if you cannot talk about your financial troubles with the counselor it will make the credit counseling ineffective and often you will feel you have wasted time undergoing the process.
Credit counseling is only one solution to the situation as a whole. We mentioned it is a part of the larger picture. This is due to the need for you to actually get rid of the financial burden you have. You need to pay down those credit cards and loans. Counseling focuses on why you have the high balances. Now you need an option that will help you like management, settlement or consolidation, where you focus on paying off the money owed whether it is through a negotiation to a settlement, consolidation loan, or a management plan devised during your credit counseling talks.
Top Companies for Credit Counseling
National Debt Relief.This company provides a wide range of services including financial help. They work to settle all of the financial burden at once rather than working with one creditor at a time to eliminate your financial obligations.
The next company CuraDebt provides a lot of information and facts. It still has counselors to help you, though. In fact their main focus is more on credit counseling, enabling you to get the help you need before you try to pay down any of your monetary balances.
Debt Consolidation Care is a credit counseling company too. They focus mainly on credit card companies; however, they can also help you reduce loans.
Reduction of any monetary burden you have will make your life a lot simpler in terms of your income. You may find that your income is actually quite sufficient once you are out of financial trouble. Of course, it all depends on what you make and what you spend. Our moods can certainly determine what we spend. When we are tired of living a boring life to save money we can splurge. This is why going to credit counseling can help you figure out what causes the splurges, overspending and overall issues.