Does consumer credit counseling work?
Credit counseling for consumers is an effective means for reducing or eliminating debt issues in an amicable manner. The strategies used by consumer credit counselors are excellent for resolving disputes with creditors, while maintaining or improving your credit score. There is no doubt that, when it is possible, creating a debt management plan with a counselor is a sound way to get out of the debt trap.
Credit Counselors Are Like Therapists
While credit counselors are not licensed by the state to deal with the emotional impact that debt can have on an individual or family, they are experienced and knowledgeable enough to help one logically work out a plan to eliminate their troublesome debts. A meeting with a debt counselor is certainly a pleasant, though sometimes naturally truth seeking, session that always brings solutions to the table. One should not fear the counseling session provided by such agencies, because they are meant to identify faulty thinking and apply budgeting skills to fix it.
Credit Counselors Are Your Advocate
The great advantage to using credit counselors for consumers is their established relationship with creditors. They have the ability to negotiate the waiver of fees and penalties, reduce interest rates, and create an agreement between debtor and creditor on repayment. This means your credit counselor is truly an advocate acting on your behalf as soon as you walk in the door. More importantly, these professionals have your best interests at heart, and are trained to deal with many different situations using a consistent, logical approach.
Most Consumers Need Credit Counseling
To embark on the path that consumer credit counseling offers is a positive step in the right direction when one is bogged down by the horrors of too much debt. As a teacher and advocate, the credit counselor will provide the most logical and feasible route to financial freedom possible. This is done simply by applying sound budgeting and finance management principles used consistently by those in the profession. The positive side to credit counseling includes the personal support you receive by working one-on-one with someone who listens and understands your unique circumstances.
All in all, consumer credit counseling only works if one makes it a priority to complete the steps laid out by an agency. This requires commitment to on-time payments, changes in lifestyle, and consistent communication with your credit counselor. If one wants it to work, it will. Consumer credit counseling is a sound and recommended first approach to resolving overwhelming debt problems.