Credit Card Guide

What Is Credit Counseling?

23 February 2013 by CreditCardsCo™

Whether you plan ahead or wait till you need the help, credit counseling is a good way to prevent and recover from financial mistakes. Professionals can see farther ahead and better understand your options so they can help you make better decisions. They can also help guide you through a particularly tough economic period.

Credit counseling can help anyone, whether in good financial shape or otherwise, who wants to stay on top of their financial future. They have the tools, experience, and knowledge about the credit market and about all kinds of money matters; all of which could make the difference to your bottom line.

Everybody goes through tough times. Hitting some financial snags along the road to your success will happen occasionally, even if you are prepared. If this happens to you, you should know that you can get help from a credit counselor.

Why Credit Counseling?

If your car breaks down, even if you take good care of it, you would take it to a mechanic, right? The same thing goes for your financial stability. Even if you are good with your money, there are many things that you might not foresee in the near future. It often takes someone very skilled with money and with tracking the market to be able to identify these things. This is why it is a good idea to get credit counseling if you want to be sure that your credit continues to serve you as best as it possibly can, just like taking your car to a seasoned mechanic could ensure that it serves you for a long time.

Of course, not everyone knows how to properly care for a vehicle, and similarly not everyone understands what it takes to responsibly manage credit. This is, obviously, another reason why credit counseling is important. You can get a better idea of your financial health and what you can do in the future to improve it.

How Does Credit Counseling Work?

When you meet with a credit counselor, they will basically go through your finances and help you better understand the right and wrong things you are doing. Meeting with a counselor will usually entail:

  • Reviewing your personal information and income accounts
  • Reviewing your personal budget
  • Discussing spending recommendations
  • Determining income leveraging versus expenditures
  • Reviewing assets and liabilities
  • Obtaining debt account statements (credit cards, loans, etc)
  • Reviewing your newest financial options regarding your particular circumstance
  • Creating an action plan for improving wherever possible

Again, you do not need to be in or nearing financial ruin to see a credit counselor. These principles and this format can be applied to strategies at all levels of financial success.

Does Credit Counseling Really Help?

Well, it can't hurt you! Honestly, credit counseling has helped many people to recover from many financial mistakes and move on towards great financial success over the years. Many credit counselors are not-for-profit, which means that you could get this advice free of charge, or at a very low cost. This is extremely important for people who are, in fact, struggling to make ends meet and truly need the help that is available.

If you are dealing with a potential bankruptcy or credit default, getting credit counseling can actually help the process as it displays your recognition of responsibility. Obviously, your lenders do not want to close your accounts so when you get the help that you need, it acts as a faith-builder that can, hopefully, influence the way your creditors view you and your account. It can put an end to harassing letters and phone calls, too.


With an experienced credit counselor on your side, your financial future is in good hands. Whether you run a business or simply want to better manage your money, they can help you stay on top, no matter what your situation is.

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