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What Is Credit Counseling?Credit counseling is a free solution that helps when budgeting, ways to becoming debt free and tips to successfully manage your money.Credit counseling is offered by non-profit institutions and is sometimes called debt counseling. http://www.eldoctordelcredito.com/ involves a 30-minute meeting with a certified counselor who analyzes your financial status and needs to design a program that assists you in getting control of your financial situation.The plan may also include a debt-management program that non-profit organizations such as InCharge? Debt Solutions offer to eliminate credit card debt. Credit counseling is also a part of the program. an inspection of your credit score to determine all the debts. You may also receive educational material which will help you understand the basics of how you can manage your money.The goal for credit counseling is to provide an opportunity for you to gain debt relief while getting in a healthy financial direction.A service that is free that can be performed via telephone or online. Credit counseling isn't going to affect your credit score, but when the information you receive can help to pay off your debts with regular payments, it may improve your credit score.In a counseling session, you'll be provided the followinginformation:Budget Review - A counselor assists you to create a the perfect budget. It includes strategies for cutting down on expensesDebt Analysis - An analysis of your debt accounts in your credit reportRecommendationsAn? action plan with recommended methods of debt reduction, and alternatives readily available.Action plans are only an idea. Credit counselors can provide you with an understanding of your financial situation and allow you to make a decision, should it be necessary.Credit Counseling Services<img width="397" src="">Nonprofit agencies offer other services that complement counselors for debt, however, credit counseling is a question-and-answer process. If the counselor recommends you could also opt for the debt management plan which could include bankruptcy, or even a review of your student loan.Debt CounselingThe? first credit counseling appointment where your certified credit counselor gathers information on your income, expenses and assets. They'll then get the details of your credit report . They will also review your debts with you. Counselors can make suggestions on how decrease expenses so that you pay off debts quicker. They could suggest the debt management process or bankruptcy as a result of your income the assets you have and your debts. Find out more information about what happens in the credit counseling session.Debt Management PlanIf? you're earning enough sufficient to cover your debts an advisor may suggest an approach to managing debt (DMP). A debt management program isn't an actual loan, and it doesn't decrease the amount of money you owe to the credit card company.What a debt-management plan does is make it easier for you - and cheaper - to pay off credit card debt in 3 to 5 years, without having to take out loans. Some credit card firms offer lower interest rates for those who sign up to debt management programs in exchange for removing your credit cards and making consistent timely monthly payments.A reduction in the rate of interest to 9% (and sometimes lower) will lower the monthly payment to a sensible level, while paying off debt in 3 to 5 years.Non-profit organizations will charge a fee for this service. It is one time, setting-up cost (usually 50 dollars, but not over $75), and an annual service fee of $32, based upon your state as well as debt amount. Learn more about DMP charges.Bankruptcy CounselingThe? counselors who are certified at InCharge? are able to offer pre-filing debt counseling and pre-discharge bankruptcy counseling in bankruptcy cases for individuals filing for bankruptcy. Both of these sessions are required for those who are considering bankruptcy. The education courses can be completed online or by phone with the help of a credit counselor.You'll receive a certification of completion that must be submitted by the court to ensure that debts are eliminated. There's an expense involved however that cost could be waived in the event that you cannot pay it.Housing Education & CounselingCredit? counselors are able to provide the services of housing counseling such as prior to purchase counseling and foreclosure prevention counseling in addition to homebuyer's education. Numerous lenders and government assistance programs require a certificate to prove the completion of a homeowner education course to be a requirement to the loan. The classes are taught to consumers about planning their budgets, obtaining a mortgage, paying taxes as well as home inspections, among additional important lessons associated with the home-buying process. The classes are provided from non-profit organisations that are accredited by the U.S. Department of Housing and Urban Development (HUD).Student Loan CounselingThe? federal government offers eight student loan repayment plans that each have distinct benefits and qualifications. With counseling for student loans, it is possible to receive a tailored report of your federal student loan repayment options when you provide details to a licensed counselor. The data is analyzed with an algorithm that allows you to find repayment options that are eligible which include discharges that could be possible, repayment plans, and rehabilitation.When Should You Consider Debt Counseling Services?Counseling with a credit counselor is helpful for any decision-making phase of your financial life, but it is the most beneficial when you realize it's impossible to manage your bills and require a way to pay down credit card debt.A few common examples of situations where credit counseling could aid would include:A job loss or cut in work hours causes financial issues.Your job is steady, but you're still living paycheck-to paycheck because you're either unable to formulate your own budget or you don't have the discipline to stick with one.Credit cards are used in order to pay the everyday costs such as rent, utilities or food costs, as you don't have enough cash in your purse or in your bank account to pay for those expenses immediately.Excessive spending on things such as dining out, entertainment and clothes leaves no savings at the end of the month. This is to be put into a savings accounts or emergency funds.The situations described above are typical and are fixable. Credit counselors know how to deal with the problems that bring the consumer down and offer several suggestions and solutions that can change the way you live your life to improve your financial situation.Credit Counseling to Reach Your Financial GoalsIt?'s not just about offering solutions for debt relief. Certified counselors are trained on how to get customers to look beyond short-term financial problems and set up long-term objectives that help them avoid problems in the future.Here are some goals you can work toward once you are debt-freeHome buyingBuying a carChildren going to collegeFinancing a retirement accountEstablishing an emergency fundPlanning a tripThese are goals you can achieve when you've got the right strategy. The right credit counseling will help you shape that plan.