“HELP! I need somebody, HELP!” We know you know this tune by heart but, have you ever wanted to scream out “HELP” when it comes to your financial situation? Student loans, debt, mortgages…This can all become super stressful, especially when we have to pay one bill after another. But, what if we told you that there are companies that solely exist to help you become debt-free? Yes, they do exist and no, they are not too good to be true. We are talking about credit counseling.

 

Credit Counselor Showing Client Their Credit Report

 

Credit counseling is basically a helping hand when you are up to your neck in debt and can’t seem to find a way out. This is a service designed to help individuals achieve their credit and financial goals. All of this is possible with the help of your trusty credit report and monthly budget. After going through this information, a credit counselor may be able to help you with advice or by organizing a “debt management plan”. But, isn’t this the same thing a debt relief company does? Not necessarily.

Difference Between Credit Counseling & Debt Consolidation

 

Credit counseling organizations are usually non-profit organizations (that may or may not charge you a fee for their services), and will advise you on the best ways to manage your money. Under their debt management plan, you make a single payment to the credit counseling organization each month or pay period. Then, they make monthly payments to your creditors. However, they do not negotiate any reduction in the amounts you owe, unlike debt relief companies. Instead, they lower your overall monthly payment by getting the creditor to increase the time period and/or lower the interest rates.

Knowing all the basics of credit counseling now, how can this help you or a family member in need? For starters, in these sessions, you not only get advice on how to create a debt management plan, but they also educate you with additional resources so if you ever see yourself in the same situation in the future, you will know what to do. Also, since credit counseling starts with an overview of your credit report, you will get to learn how to use your credit report to your advantage and this way identify opportunities to improve financially.

How does Credit Counseling Work? Review

 

Credit counseling can make a major difference to your financial situation and can help you make the financial changes you need to make! To learn more about how you can start your debt-free journey today, contact Mediator Debt Solutions. We will be more than glad to assist you.