4 Reasons a Consumer Needs Credit Counseling
Don’t let pride and uncertainty get in the way of achieving stability.
If you’re like most consumers, you’d prefer to solve financial challenges without outside assistance. Whether it’s fear of judgment, embarrassment over getting into a bad situation or an instinct desire to solve problems on our own; it can be tough to overcome the mental and emotional barriers that may prevent you from reaching out for help.
However, in many cases, reaching out for help is not only beneficial, but it may also be the only way to really move forward. The information below is designed to help you understand how credit counseling helps consumers get ahead of challenges with debt. If you have debt and need help to find the right solution to move forward, call Consolidated Credit today at or complete an online application to request a free debt evaluation from a certified credit counselor.
No. 1: Consumer debt solutions are wide-ranging
There’s definitely more than one way to pay off a problematic debt. From do-it-yourself solutions like debt consolidation loans to assisted help with a debt management program, there are several ways to get to zero. The right one to choose really depends on your situation.
A certified credit counselor specializes in helping consumers find the right debt solution for their unique financial needs. This way, you don’t have to be a financial expert or spend hours researching individual solutions. You can easily focus in on the one that can really benefit you the most.
No. 2: A counselor can look at your budget objectively
Credit counseling starts with a thorough review of a consumer’s budget and finances. This allows the credit counselor to evaluate how much money you have available for debt elimination. It also allows them to help identify spending leaks in your budget.
Spending leaks are areas in a consumer’s budget where that person is spending more money than what’s recommended. For instance, if you’re constantly buying specialty foods or dining out, you may have spending leaks in your grocery budget. If you’re a shoe fanatic, then your clothing budget may have spending leaks.
An impartial observer is more likely to catch these kinds of issues, which provides a means for a consumer to free up more money for debt elimination.
No. 3: Free consumer credit check
Often when you face challenges with debt, maintaining a clean credit profile and good credit score becomes less of a priority. If you’ve been ignoring your credit during a period of financial hardship, you may not even really know where your credit stands.
During your initial consultation, the credit counselor reviews your consumer credit profile to see where you stand. By law, they cannot provide a credit report to you directly, but they can take a look under the hood and tell you what they see. This can help further determine which debt solution will be the best for you, either to maintain the score you have or to build credit if you’ve fallen behind due to debt.
No. 4: Adjusting credit habits often requires help
If you’ve grown accustomed to pulling out plastic anytime you want to make a purchase, it can be tougher than you might think to curb that habit. Consumers working with credit counseling services have a range of free resources and professional assistance to build better credit habits.
Your credit counselor will help you construct a budget that doesn’t rely on credit, so you can live credit-free. Additionally, while a consumer is enrolled in a debt management program, all credit card accounts are frozen until the program is completed. So consumers learn to live without credit during the debt elimination process. Then they carry those lessons back into their everyday lives.