What is Credit Counseling?

If you feel as though your debt may be getting out of hand, then turning to credit counseling may be the right step for you to take in order to achieve personal financial resolution. Credit counseling is basically discussing one’s personal financial situation with another individual who is qualified to provide sound fiscal advice. Occasionally, if too much money is owed, the credit counselor will advise that the debtor set up a debt management plan (DMP) with his or her creditors.

What is a debt management program?

If the debt and budget analysis provided by a credit counselor returns negative results regarding one’s financial standing, then he or she may be recommended to enter into a debt management program. A debt management program allows the debtor to set up a plan with the creditors in which rates, fees, and payments are all reduced in accordance with what the debtor can afford.

These plans are negotiated between the credit counselors and the creditors. The debtor is typically not involved in setting the terms of his or her DMP.

The National Foundation for Credit Counseling

This is a nation-wide, nonprofit organization that was established to provide credit counseling to individuals in debt all across the country. They claim to provide the following services to those in need:

• Budget counseling and budget education
• DMPs
• Counseling referral services
• Financial literacy courses
• Housing counseling

NFCC counselors are available to debtors all across the United States.

Contact Us

If you would like to learn more about credit counseling, please contact a Boca Raton bankruptcy attorney of Eric N. Klein & Associates, P.C. today at 561-353-2800.