Dealing with Debt

5 Nonconventional Ways Credit Counseling Can Help You

Blog Home

Nonprofit credit counseling can be a form of debt help that many people don’t even think to try. If you are struggling with unmanageable unsecured debt, then credit counseling might be the answer for you. This blog post will discuss five different ways credit counseling can offer assistance in your financial situation.

1) Credit counseling can help you consolidate debt –

Consolidating all of your credit card and other line-of-credit debts into one monthly bill is a great way to streamline the repayment process, which typically saves time and money in interest fees. Since most unsecured loans carry high-interest rates, consolidating them will allow you to pay off that loan more quickly than if you continue making minimum payments on multiple different accounts each month.

When working with professional counselors, clients can create customized plans based on how much they can afford for repayments per month. This takes some of the stress out of trying to make ends meet during difficult times like these!

2) Counselors can help you develop a new budget –

When clients engage professional credit counselors, they typically know how much money is coming in and going out of their household each month; however, the numbers aren’t adding up properly, or certain expenses are being overlooked. We can look at where your money is going and suggest ways to cut back on unnecessary spending so more funds will be available toward debt repayment.

Developing a realistic plan for repaying unsecured loans requires input from both parties: creditors and the borrower. Unfortunately, many people only communicate with credit companies when payments fall short, or something goes wrong – but it’s important to establish good communication habits between all parties early on.

Get Started With a Free Debt Analysis

We make it easy on mobile or desktop. FREE with no obligations.

3) Credit counseling can help you with your creditors –

Credit counseling isn’t just about helping clients develop a repayment plan. It’s also about coordinating with their creditors to ensure everyone is being treated fairly under that plan.
When working through housing counseling, a counselor contacts all of your lenders so they know what his client’s current financial situation looks like and how much more money will be available every month toward debt repayments via this new budget. Once everyone understands the payment process, there should no longer be any confusion or miscommunication between parties when dealing with delinquent accounts.

4) Counselors can help you learn to communicate with creditors –

Once your repayment plan has been set up, and everything starts going according to schedule, it’s all too easy to fall back into old habits when dealing with delinquent accounts because financial stressors are no longer at their peak levels.

Professional work closely with each client throughout their entire time working together, so we understand how important it is that they continue practicing good communication skills even after repayments have started coming through again.

5) Credit counseling can help you save money on interest and fees –

When clients are stuck in a pattern of making minimum payments on their credit accounts, they frequently miss the chance to pay back more money toward principal each month. The longer you’re carrying an account balance with high-interest rates, the more time will pass before you see any progress toward paying it off completely- which is why we encourage borrowers to make extra repayments whenever possible.

One great way for borrowers to save money is by placing one monthly payment directly into the ACH system of the counseling agency so the funds can be applied immediately toward outstanding balances. This also reduces paper checks that need to be mailed and hassle associated tracking down lost or misplaced envelopes.

Although credit counseling won’t make all of your debt disappear, it can help you get out from under some accounts, such as credit card debt, and reduce the amount of interest fees that would usually be paid to creditors.

Author: Lauralynn Mangis
Lauralynn is the Online Marketing Specialist for AdvantageCCS. She is married and has two young daughters. She enjoys writing, reading, hiking, cooking, video games, sewing, and gardening. Lauralynn has a degree in Multimedia Technologies from Pittsburgh Technical College.