Credit counseling is a service offered by nonprofit agencies to help consumers analyze and take control of their finances. Most credit counseling sessions include pulling a current credit report, reviewing a consumer’s income, expenses and debts, creating a budget and suggesting a solution for paying off credit card debt. Many consumers wonder when they should seek credit counseling. Let’s look at some scenarios when it’s helpful.

You Need Help with a Budget

Figuring out a balanced budget can be challenging — especially with the current economic ups and downs. Credit counseling can help you put together a budget by analyzing your expenses compared to national averages and suggesting adjustments to various budget categories. And every client receives a budget unique to their circumstances — we know there aren’t cookie-cutter solutions. Once you work out a budget, it’s yours to keep and adjust as needed to help you stay on track.

You’re Making Multiple Credit Card Payments

Keeping track of multiple credit payments every month is not only a hassle, it can cause you to pay late or miss payments, which harms your credit. Credit counseling can help you determine exactly how much you owe to which creditors, and help you get back on track with making timely payments.

You’re Preparing to Make a Major Purchase

If you’re preparing to make a major financial transaction, such as buying a vehicle or purchasing a home, it can be helpful to seek credit counseling. You’ll have the chance to review and discuss your credit report to determine if there are any errors, omissions or improvements you can make. And if you have credit card debt you need to pay off before making your purchase, you’ll receive a recommended solution that can make it happen.

You’ve Missed Payments and Need to Catch Up

If you’re already behind on credit card payments, it’s definitely time to reach out for some help. Credit counseling can be the first step toward finding a solution to help you catch up on payments and start making progress toward paying off your credit card debt. If counseling reveals you’re a good candidate for a debt management plan, you could enjoy reduced interest rates, an end to collection calls and late fees, and the convenience of making one monthly payment to the credit counseling agency, who then pays your creditors.

You’re Feeling Overwhelmed by Debt

The last few years have been stressful for so many reasons. If you found yourself turning to credit cards to make ends meet, you’re probably maxed out, stressed out and ready for a real solution. Credit counseling is the first step toward regaining control and working toward financial freedom. Many clients tell us they feel a sense of relief after their first conversation with a counselor. And if you’d rather not talk to anyone, you can even complete credit counseling online at your own pace. Either way it’s totally private and confidential.