Dealing with Debt

The Benefits of Free Consumer Credit Counseling

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Credit is one of the most important tools a consumer can have. In today’s society credit is vital to being able to have financial influence and being able to navigate as a consumer. A person has to protect their credit and safeguard it. Once an individual gets labeled as having bad credit, it can be very hard to re-establish your credit. A very good ally to have in a person’s quest to repair their credit is free consumer credit counseling.

Non-Profit Consumer Credit Counseling services provide valuable resources and benefits to consumers in several different ways. One of the most important benefits is in the form of education. Many times people don’t realize how negative credit can affect their lives, not just in the world of credit, but also in the world of employment. Most jobs now do a credit check on people before they hire potential new employees and sometimes bad credit can affect whether or not an individual gets hired for a particular company.

Also credit counseling teaches consumers how to manage their finances and it teaches them about things like debt-to-income ratio. Sometimes consumers are just so happy that they can even get credit and they don’t recognize the responsibility that comes with credit and how bad credit can damage a person’s financial situation. It’s vital to understand credit counseling and everything that comes with it. Consumer Credit Counseling teaches people how to better manage their money, set up a spending budget, how to understand their credit report, how to look for errors on credit reports, and how to fix those errors.

The great thing about free consumer credit counseling is that as a third party they can help consumers work with their creditors to find a solution to their credit/debt problems. This is called a Debt Management Program or DMP for short. They can talk to the creditors on behalf of their clients and try to work out monthly payment arrangements for their clients. They can usually get lower interest rates and most fees waived for their clients, and they can even disburse payments to the creditors on behalf of their clients. The wonderful thing about a Debt Management Program is that the certified credit counselors can work out their client’s monthly payments based on what their clients can afford each month.

Another great reason why people should look into non-profit consumer credit counseling is because it will help the client pay off their debt at a much faster pace. A DMP can help the consumer’s credit because it shows the creditors that the client does intend to pay the debt back, instead of just walking away from it. A Debt Management Program can also help an individual save thousands of dollars in interest fees.

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Once a consumer enlists the aid of the credit counseling agency to act on their behalf, it will stop the harassing collector phone calls coming from the creditors and/or collection agencies. There are a ton of benefits that free consumer credit counseling can provide to a client. If a person is struggling with unsecured debt they should swallow their pride and realize that credit counseling can help.

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.