Credit Counselling –
How can it make
a difference and
help you manage
In the recent times, many people are going through financial problems and due to various reasons cannot stick to their budget. In such a situation,credit counselling programs can help them create a unique spending plan depending upon their needs. However, this doesn’t mean that their lifestyle will get compromised due to this program.
What is credit counselling all about?
When you opt for credit counselling and contact a professional agency for the same, you will actually get in touch with a certified counsellor. This person will do an analysis of your financial situation. This will help you and your counsellors know as to where your finances stand. The analysis will be completely free of cost. Depending upon this analysis, the counsellor will give you advice. The counsellor will work with you to identify how you can save more money. However, you won’t be obligated to become a client.
In case, after the credit counselling is complete, some people are advised to go for the debt management plan (DMP). If you decide to opt for it, then the agency will offer a payment plan to your creditors based on your financial situation. This may help you get interest rate reductions, fee waivers, etc. from your creditors. If you agree to the payment plan, then you will have to make one monthly payment to the agency. Your creditors will receive the payments from the agency, who will distribute that single monthly payment equally amongst them.
In order to educate you and help you avoid future financial problems, the credit counselling agency will offer you free financial guidebooks, online calculators, access to educational websites, etc.
Under what circumstances should you opt for credit counselling?
There are certain circumstances when you should opt for credit counselling. Let’s take a look:
- You can opt for this option when you’re living pay check to pay check.
- This option can be of help when you cannot prepare a budget for yourself.
- You can opt for this program when you have fallen behind on your payments.
- You should go for this program when your account balance and credit limit are almost same.
- This option will be good for you when your credit cards have high interest and you can’t make minimum payments.
What is the time taken to complete the credit counselling program?
Well, though situations may vary, normally a debt management plan will help you pay off your debts within a time period of 3 to 5 years. There are some people who can get their plan completed within 42 months also! The time period may get extended if you keep on adding more and more accounts to the plan.
Thus, it should be noted that credit counsellors are specialists who are here to help consumers deal with their financial problems. They will help people resolve their delinquent payment problems. With their help, you will be able to gain control of your finances. As the counselling is free of cost, you should not be indecisive to give a call to the credit counselling agency.
Debt is a serious brain-killing problem. Wish it could be really easy to be free from the dark clouds of debt. The pain and stress under debt could be different for who is holding it.