Debt Relief Through Credit Counseling

If you have ever experienced problems with debt or are currently seeking debt relief, you may have heard of credit counseling. Credit counseling is a low cost service provided to you by a non-profit or government agency to help understand some of the options for getting out of debt. Credit counseling companies can help you develop a debt-management plan, which may include bankruptcy filing. This may lower your monthly payments, prevent you getting in over your head, and may even lead to debt relief. However, there are some things to know about when to seek credit counseling, and when other solutions may best fit your needs.

Debtor Education

Credit counselors work with you to develop a debt reduction plan that fits within your budget. You can then follow the credit counselor’s advice to keep your debt under control. For people experiencing the early stages of financial trouble, credit counseling may be a good tool for managing debts. Many people seeking credit counseling will attend a debtors education course or seminar on money management. The idea is to teach skills for better balancing income and debts, learn tools for budgeting and investing, and how to obtain financial goals.

Although a helpful tool, credit counseling won’t be able to stop credit collections, fight foreclosure or repossession, or provide a timely elimination of debt burdens. For those experiencing the effects of missed payments and high debt burdens, credit counseling may be better off as part of a debt relief package; such as bankruptcy. Those who file bankruptcy will also attend a debtor education course; but, the difference is bankruptcy comes with big solutions to large financial problems.

Filing for bankruptcy can immediately halt credit collections, and protect your income and assets while you work out a solution to your debt liability. If you are experiencing problems paying your debt, harassment from credit collectors, or are at risk of losing assets, contact a Modesto bankruptcy attorney at 916-459-2364 for help today.