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 Credit counseling organizations help 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. Credit counseling agencies can be either not-for-profit or charge a reasonable fee for their services. In a credit counseling program, you are advised on your money and debts, are provided with guidance on your credit, helped with budgeting, and can be offered debt and money management workshops. 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 management, so you don’t fall into unmanageable debt that overwhelms you again. Start New Financial’s debt management plan is a particularly excellent one. To help a debtor become debt free while avoiding bankruptcy is the primary goal of most reputable credit counselors. Many counseling services like Start New Financial negotiate with the debtor’s creditors on her/his behalf to reduce late fees and interest rates. These highly experienced counselors, that are vigorously trained and certified, work with their clients compassionately to help them develop a personalized plan for their credit issues. The initial counseling session is generally an hour long, and follow-up sessions are usually required. The credit counseling agency might advise the debtor to enroll in a debt management plan when her/his financial difficulties consist of too much debt. The specialized credit counselor offers the debtor customized money management advice after thoroughly reviewing his/her entire financial situation. An individualized debt management plan that is designed for the debtor’s unique circumstances may be included in this advice. This all leads you towards the financial freedom of becoming debt free. Of course, there are advantages of credit counseling as well as disadvantages of credit counseling which you credit counselor will go over with you to help find the most suitable for your credit needs. In credit counseling, 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 provide you with guidance on your credit, management on your money and debt, and also helps you with your budgeting. We help you manage a balanced credit line with credit counseling and educate you on how to maintain healthy finances, primarily so you can avoid bankruptcy. We negotiate with your creditors on your behalf to obtain reduced late fees and interest rates for you. We collect just one monthly payment from you to distribute to each of your creditors the payments due to them each month, and guide you to pay off your debt.

Credit counseling has minimal impact on your credit score and waives or lowers certain fees on your debt while also lowering your rate of interest. It may cost you less than the minimum payments you are currently making and you could be debt free in 36-60 months. It is a very good option if you owe more than $5,000 in a personal loan or of medical or credit card debt. Until the banks make a note of it, you enjoy single digit interest rates with credit counseling. Your debt specialist 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 prepare a copy of your credit scores and report and develop a debt management plan for you to help you unlock the crucial debt period. You make just one monthly payment that generally is much lower than what you were paying, as well as all collection calls cease and desist.

First of all, in order to qualify for credit counseling, 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 with credit counseling, and your DMP could be void and null and your interest rate returned to the same amount as it was before you enrolled, if you are unable to make payments. The credit counseling program can have an impact on your credit. Your credit score will lower and you will not be able to apply for any new credit, making it very difficult to apply for new credit during the program because lenders may view you as a credit risk. Credit card counseling is not the best solution if you want to continue using credit because all your accounts will be closed once you enroll.

Advantages of Credit Counseling

Credit counseling has minimal impact on your credit score and waives or lowers certain fees on your debt while also lowering your rate of interest. It may cost you less than the minimum payments you are currently making and you could be debt free in 36-60 months. It is a very good option if you owe more than $5,000 in a personal loan or of medical or credit card debt. Until the banks make a note of it, you enjoy single digit interest rates with credit counseling. Your debt specialist 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 prepare a copy of your credit scores and report and develop a debt management plan for you to help you unlock the crucial debt period. You make just one monthly payment that generally is much lower than what you were paying, as well as all collection calls cease and desist.

Disadvantages of Credit Counseling Programs:

First of all, in order to qualify for credit counseling, 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 with credit counseling, and your DMP could be void and null and your interest rate returned to the same amount as it was before you enrolled, if you are unable to make payments. The credit counseling program can have an impact on your credit. Your credit score will lower and you will not be able to apply for any new credit, making it very difficult to apply for new credit during the program because lenders may view you as a credit risk. Credit card counseling is not the best solution if you want to continue using credit because all your accounts will be closed once you enroll.

To help your finances, credit counselors offer budgeting assistance and other services.

No matter your financial situation, credit counseling agencies can offer free money advice. If you are struggling to figure out your budget, recently lost your job, or want to explore all your debt payoff options, credit counselors can help you right away.

Both for-profit and nonprofit credit counseling agencies offer a variety of services, including general personal finance advice, homeownership counseling and more. Some services are free. Use your FREE phone consultation with Start New Financial so we can help you with your debts.

Find out how much you can save with a personalized Debt Resolution Program

By enrolling with Start New Financial TODAY.

Call today for a free consultation (800)329-9083

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