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John E. Pytte May 15, 2017

credit cards in pocketTo understand the concept of consumer credit counseling, one must first understand what it is not. Credit counseling is not a loan product of any kind. It is not a service that is going to provide a person with a traditional debt consolidation loan, a bandaid or an easy fix. A credit counselor is not going to teach a person any tricks or shortcuts. What this person will do is guide a consumer back to financial health from any stage of financial ill health. A counselor can help a person who is in the worst of fiscal condition and help them plan and negotiate a path to strength.

Credit Counseling for the Financially Troubled

Consumer Credit counseling providers use the same rationale that other types of counselors use. They know that their clients do not have the tools or resources that they need to manage their credit scores effectively. Like any other counselor, the credit counselor starts helping a new client by conducting an assessment. In other words, this person looks at the client's entire financial profile to see where the problem resides. The financial profile includes the credit report, expenses, income, savings, assets and the like. The only way to tackle a problem is to look at closely, and the counselee must be willing to find the problems and face them head on.

Why People Need Credit Counselors

The goal of the credit counselor is to figure out what the problem is and then work with the client to come up with a viable solution. Examples of issues that cause credit problems are job losses, pay decreases, broken families, disabilities, lack of education and in some cases, irresponsible behavior. A debtor's credit often becomes overwhelming to the point of burnout before that person seeks assistance from a specialist who can help.

Help With Bankruptcy

Some consumers quickly try to file bankruptcy when they realize that they have a problem with their credit score. The process isn't that simple, however. Many states require debtors to take credit counseling courses before they allow them to file for bankruptcy. Credit counselors can provide the pre-bankruptcy courses that consumers need, but they can also help them to see that they have other options. Sometimes, all a debtor needs is up to date information, organization and motivation to get back on track.

How Credit Counselors Help

Once the credit counselor examines the client's profile, he can help that person to tailor a solution that will work for that situation. A debt management plan is just one solution of many. It's a process in which the counselor helps the consumer to calculate a monthly repayment figure that works with his budget. Some counselors even negotiate with the creditors to get the balances down before the client makes payments. Then, the counselors collect the money and pay the creditors for the debtors to relieve them of the burden. The counselors give the debtors hope of recovery, some accountability to start new habits and they show them that it's possible by creating a blueprint of the repayment strategies.

Ongoing Tips and Relapse Prevention

Credit counselors never stop offering assistance to the people who come to them for help. They continue to offer credit tips because they want their clients to stand strong on their own and not get back into financial ruins. Post-recovery credit counseling may consist of webinars, courses, articles, groups and other products.

How to Get Consumer Credit Counseling

Consumer Credit counseling is available through a number of respectable organizations. It's important for a prospect to conduct thorough research and find a firm that has a positive reputation and sincerely wants to help. Credit recovery is not a quick fix, but it can be a permanent fix with the right entity leading the way.

Georgia Debt Relief is here to assist anyone in financial trouble. We’ll help you discover the best ways to get out from under the load of debt you have. Call us today for a conversation about your situation.