Credit counseling is one of the options recommended by a recent report from U.S. News and World Report, which recently gave tips on how consumers can get out of debt. The article recommends considering credit counseling in the case that a consumer can’t get out of debt by just budgeting and cutting spending.
Credit counseling can help consumers by getting them into a debt consolidation program.
“Debt is consolidated into a single monthly payment, often with a lower interest rate, and ongoing damage to your credit score will begin to reverse as long as you make payments on time,” the article from U.S. News and World Report stated.
Credit counseling can be a great option for those people who have skyrocketing interest rates, who cannot afford the minimum payments, or who are finding themselves struggling to make ends meet at the end of each month. When working with a credit counselor, consumers should make sure the advisor has a relationship with all their lenders, thus ensuring all of their payments are consolidated.
Along with regular consumers, students may also consider using debt consolidation. A recent report in the Cherokee Chronicle Times indicated students may be able to save money if the consolidate within six months of graduating.