Credit Counseling

Credit counseling in itself is a starting point for people who are looking for the right solution to debt that has become problematic, and not a debt relief solution per se. It is a great start to a journey to financial freedom, one where you’ll discover all your options as well as where you stand. Start New Financial offers FREE credit counseling by phone in your FREE phone consultation. Call us TODAY to get started; we’d be so happy to help, especially with the damage COVID-19 has caused to consumers.

Start New Financial has the best caring and experienced certified credit counselors

Two 2 Types

There are 2 types of credit counseling but the most common one is general consumer credit counseling. The purpose of general consumer credit counseling is to explore options other than bankruptcy and find your best financial solution.

Pre-Bankruptcy CC

Since Bankruptcy is a last resort, to make sure the debtor has explored all of her/his options before determining that bankruptcy is their best option, the Bankruptcy Court requires the debtor to undergo pre-bankruptcy credit counseling.

Guidance

Upon speaking with a credit counselor, many debtors who thought they had to file for bankruptcy are surprised to learn there are other solutions for them. Those without a specific solution in mind are guided in the right direction.

Individualized

The most effective financial counseling is personalized, because the best solution will always vary depending on your specific financial difficulties and your goals. That is why there will never be a one-size-fits-all solution to debt issues.

What is Credit Counseling?

What is credit counseling all about? A credit counseling agency helps guide you to financial freedom with effective credit counseling services that help you get rid of unsecured debt such as credit cards, collection agencies, unpaid medical, dental, attorney bills and so forth. A credit counseling agency can be either not-for-profit or charge a reasonable fee for their services, and as with most things in life, has its advantages to credit counseling and its advantages to credit counseling. In credit counseling programs, you are advised on your money and debts, are provided with guidance on your credit, helped with budgeting, and can be offered money and debt management plans and workshops. Your friendly neighborhood credit counseling agency Start New Financial’s credit counselors educate you to help you address the root cause of your debt problems, whether it is bad spending habits or poor financial and debt management, so you don’t fall into unmanageable debt that overwhelms you again. The debt management plan that Start New Financial has is a particularly excellent one.To help a debtor become debt free while avoiding bankruptcy is the primary goal of most reputable credit counselors.

A credit counseling service like Start New Financial’s negotiates with the debtor’s creditors on her/his behalf to reduce late fees and interest rates. These highly experienced credit counselors, that are vigorously trained and certified, work with their clients compassionately to help them develop a personalized debt management plan for their credit issues. The initial session in a credit counseling program is generally an hour long, and follow-up sessions are usually required. When her/his financial difficulties consist of too much debt, the credit counseling agency might advise the debtor to enroll in a debt management plan involving debt consolidation. The specialized credit counselor offers the debtor customized money and debt management advice after thoroughly reviewing his/her entire financial situation. This advice may include the designing of an individualized debt management plan to fit the debtor’s unique circumstances tailor-made. You are conducted to the financial freedom of becoming debt free by all this expertise. Of course, there are advantages of credit counseling as well as disadvantages of credit counseling programs which your credit counselor will go over with you to help find the most suitable for your credit needs. In a credit counseling program, a certified credit counselor thoroughly reviews your entire financial situation, sets up lower interest rates with your creditors if possible, and creates a debt management plan for you to follow.

BEFORE YOU CHOOSE CREDIT COUNSELING LEARN MORE ABOUT IT

Credit counseling services from a fine credit counseling agency provide you with guidance on your credit, money and debt management, and also helps you with your budgeting. We help you manage a balanced credit line in a credit counseling program and educate you on how to maintain healthy finances, primarily so you can avoid bankruptcy. On your behalf, to obtain reduced interest rates and late fees for you, we get into negotiations with your creditors. We guide you to pay off your unsecured debt and collect just one monthly payment from you – not for us – but to distribute the monthly payment among each of your creditors that is due to them each month.

Advantages of credit counseling. A credit counseling program from a certified credit counseling agency has minimal impact on your credit score and waives or lowers certain fees on your debt while also lowering your rate of interest. You could very probably be debt-free within no more than 36-60 months and it should cost you less than the minimum payments you are currently making. When one owes more than $5,000 in credit card, personal loan or medical debt, it is a very good option. Until the banks make a note of it, you enjoy single digit interest rates in credit counseling programs. Your debt specialist credit counselor provides you with education and every sort of financial information and advice verbally and via every resource, such as eBooks, articles, and pamphlets, and helps you develop the budget you need. They develop a debt management plan for you and prepare a copy of your credit report that all helps you unlock the crucial debt period. They desist and cease all collection calls to you and the one monthly payment that you make is generally much lower than what you were paying pre-credit counseling. These are the goodies of What is credit counseling.

Disadvantages of credit counseling. These are the drawbacks that make up the disadvantages of credit counseling. First of all, in order to qualify for a credit counseling program, your debt must be between 15%-49% of your total annual income. You are required to pay startup fees plus monthly account management fees, and the principal amount of what you owe will not be reduced. Your credit card accounts must be frozen/closed when you’re in a credit counseling program, and your debt management plan could be void and null and your interest rate can be raised back to its original form pre-credit counseling enrollment, if you become delinquent on your new lower payment. Your credit can be negatively impacted by your enrollment in a credit counseling program. Your credit score can lower and you will not be able to apply for any new credit, making it very difficult to apply for new credit during your credit counseling program because lenders may view you as a credit risk. Credit counseling programs are not the best solution if you want to continue using credit because all your accounts will be closed once you enroll. So there you have it, the disadvantages of credit counseling.

Advantages of Credit Counseling
Advantages of credit counseling. A credit counseling program from a certified credit counseling agency has minimal impact on your credit score and waives or lowers certain fees on your debt while also lowering your rate of interest. You could very probably be debt-free within no more than 36-60 months and it should cost you less than the minimum payments you are currently making. When one owes more than $5,000 in credit card, personal loan or medical debt, it is a very good option. Until the banks make a note of it, you enjoy single digit interest rates in credit counseling programs. Your debt specialist credit counselor provides you with education and every sort of financial information and advice verbally and via every resource, such as eBooks, articles, and pamphlets, and helps you develop the budget you need. They develop a debt management plan for you and prepare a copy of your credit report that all helps you unlock the crucial debt period. They desist and cease all collection calls to you and the one monthly payment that you make is generally much lower than what you were paying pre-credit counseling. These are the goodies of What is credit counseling.
Disadvantages of Credit Counseling Programs:

Disadvantages of credit counseling. These are the drawbacks that make up the disadvantages of credit counseling. First of all, in order to qualify for a credit counseling program, your debt must be between 15%-49% of your total annual income. You are required to pay startup fees plus monthly account management fees, and the principal amount of what you owe will not be reduced. Your credit card accounts must be frozen/closed when you’re in a credit counseling program, and your debt management plan could be void and null and your interest rate can be raised back to its original form pre-credit counseling enrollment, if you become delinquent on your new lower payment. Your credit can be negatively impacted by your enrollment in a credit counseling program. Your credit score can lower and you will not be able to apply for any new credit, making it very difficult to apply for new credit during your credit counseling program because lenders may view you as a credit risk. Credit counseling programs are not the best solution if you want to continue using credit because all your accounts will be closed once you enroll. So there you have it, the disadvantages of credit counseling.

Credit counselors help your finances with budgeting assistance and other great debt relief services.

No matter your financial situation, a credit counseling service can offer free debt advice. If you recently lost your job, are struggling to figure out your budget, or need help exploring all your debt payoff options, credit counselors will help you right away.

There are both nonprofit and for-profit credit counseling agencies offering a variety of services that include homeownership counseling, general personal finance advice, and best of all all the debt relief help you can use. Some services are absolutely free. Now that you know What is credit counseling, use your FREE phone consultation with Start New Financial so we can help you with your debts to make you debt-free!.

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