Credit union financial counseling assists members in managing their money effectively. A financial counselor can educate members on various financial products before creating a customized plan tailored specifically to each member’s goals, needs and circumstances. Counselors also assist members with budgeting, debt management, savings advice as well as meeting with members either face to face, on the phone, or via video chat.
Credit counseling (sometimes known as credit therapy) provides consumers with guidance on consumer credit, money management and budgeting. The goal is to assist borrowers who find themselves overwhelmed with debt in avoiding bankruptcy through negotiation of lower interest rates and waiving fees on credit cards, loans and other debts; counselors may also provide information about debt repayment methods so that borrowers may choose one that works best for them.
Financial counseling services may be provided by any non-profit or for-profit agency, government-regulated organization such as a utility company, credit counseling agencies that specialize in mortgage and loan modification assistance or by utility companies themselves. When searching for this type of assistance it is essential that the organization you select provide free information on its services without asking you for personal financial details in exchange.
Services provided by credit counseling agencies often center on helping members create budgets and manage debt more effectively, teach consumers to create savings plans, improve credit scores, understand what’s on their credit report and understand how best to improve it. In some instances they can even assist borrowers avoid bankruptcy through debt management plans that involve depositing one lump sum each month into a special account, where it will then be distributed among your owed creditors.