What is Credit Counseling?

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So, you find yourself in debt and don’t know what to do about it. The phone keeps ringing off the hook and the mail is full of collection notices. All the while, your debt is growing through late fees and over the limit credit card fees. Maybe it is time to seek help from a credit counselor.

The thing about finding a credit counselor is to first and foremost get help with your debt situation. Their number one job is to help you with your financial picture. When you are in debt, that picture is a little gray and out of focus. A credit counselor can help you get back on track.

A reputable credit counselor won’t judge you on the choices you made. They are simply there to help you to make better choices from now on. Counseling of this type is designed to change your mind set about your financial situation so that you aren’t sitting in their office again in two or three years.

The following is a guideline to finding a credit counselor that will not only help you with your current financial situation but guide you into a new way of thinking about debt altogether.

• A credit counselor will be properly trained in debt management and counseling by an outside organization. Check with the National Foundation for Credit Counseling to see if the company they work for is listed. Any credit counselor with good references won’t be working for a charlatan.

• Ask friends or other family members if they can recommend a good credit counselor. If anyone you know has had to manage their debt with help ask them who they used for credit counseling. You can also turn to your local church community for recommendations. There are a number of Christian credit counselors if you would prefer.

• When setting up that first appointment, your first meeting with a credit counselor is usually free of charge. This is the time to lay out your financial problem and see what advice they can give to you. If the credit counselor is worth their salt, they can give you a number of tips in that first meeting.

• Don’t neglect your gut instincts during the meeting. Does what they say make sense to you? The steps you have to take will more than likely be difficult but there should be logic there.

• Since any credit counselor should be helping you address the very personal issue of debt, you need to be able to trust him or her. Trust your gut. If the person seems like a flake or too good to be true, try someone else.

• Don’t neglect to inquire about all their services. Just for the financial advice alone, there will be a small fee. Some credit counselors give out free budget worksheets and other materials or hold free or low cost classes about debt management.

The bottom line is to keep in mind that credit counseling is designed to help you change your views on spending and get you out of debt. Remember, a counselor can only advise you on what to do. But, if they make sense in what they are telling you, work hard to try it their way. A good counselor will help you get positive results.

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