Anyone who has to deal with an overwhelming amount of debt can attest to the fact that it can be debilitating. Whether it’s credit card debt, student loan debt, or any other form of debt, it can feel suffocating having to tackle it alone. 

 

If you’re currently struggling with debt and feel like there’s no way out, know that you’re not alone. There are many people out there who face trouble with the amount they owe, with no idea how they’re going to tackle it all. Luckily, there are entities out there that offer help to anyone who needs it, like credit counselors. 

 

What is credit counseling?

 

To those who are unfamiliar, credit counseling is a non-profit service extended to credit users to help them eliminate high-interest rate credit card debt. A credit counselor’s mission is to help you regain financial stability. 

 

They will aid in evaluating your debts, assess your budget, study your credit situation. They will then identify the best ways to tackle debt to put you into better financial standing. 

 

If you’re not capable of paying your balances on your own, credit counselors can also help you enroll in a debt management program (DMP). They will act as the middle-man between you and your creditors. To give you more leeway, they will set up a repayment plan that all parties can mutually agree on. They will also negotiate to reduce, and in some cases, eliminate interest charges. 

 

What can you get from credit counseling?

 

To help you improve your financial situation, here are some of the things credit counselors can do or provide for you:

 

  • Answer any questions you may have about debt relief
  • Explore debt relief options and solutions with you to decide on the best course of action
  • Eliminate existing credit card balances and the associated interest rates
  • Help you tackle unsecured debts, including unpaid medical bills and payday loans
  • Help you get rid of collection calls. They will talk to them for you and tell them that you’re actively working with an agency. Collectors will then go through them should they want to reach you
  • Provide useful resources to build financial literacy
  • Teach you how to budget and manage your credit effectively
  • Help you establish long-term financial stability

 

What can you NOT get from credit counseling?

 

Of course, credit counseling is not a silver bullet. There are things that they cannot accommodate you with, including:

  • Repairing your credit
  • Providing immediate debt forgiveness. They can only offer DMPs, which take around 36 to 60 payments on average.
  • Offering direct assistance for other types of debt such as a mortgage, back taxes, or student loans. 
  • Stop existing court actions related to your debt. 

 

Is credit counseling right for you?

 

Granted, credit counseling is not for everyone. In order to qualify, you must have at least $10,000 in unsecured debt. If you owe less than this amount, you must resort to a DIY solution. You must also have some income to reduce monthly payments. Unemployed individuals won’t be able to avail of this service. Additionally, most of your financial challenges should also be caused by credit cards, and your accounts remain with the original credit issuer. 

 

If you’re looking for a credit counseling agency Cincinnati Ohio, get in touch with us today to see how we can help.