A service that helps consumers repay their debts and improve their credit. Usually non-profit companies, most of these agencies offer helpful and affordable services. Consumers should be aware that there are also credit counseling agencies that are expensive, ineffective and even damaging to the client's credit (see Credit Repair). Consumers should carefully review the company's reputation and services before signing up.
traditionally a means of educating consumers with large amounts of debt about their options; however, many credit counselors are now just referral sources to for-profit debt management companies.
Company / Organization that will analyze the spending pattern of a consumer and offer counseling and a plan of action to work out an effective debt repayment strategy, working with the creditors of the consumer in question to ensure all parties concerned are happy with progress.
a non-profit organization helping people with high credit card debt avoid bankruptcy through debt consolidation loans and credit management Credit
A service designed to assist consumers that are burdened or overwhelmed with unsecured debt. With the assistance of a credit counseling company consumers can restructure budgets, receive financial education, and if necessary, consolidate unsecured debt through a DMP. See Debt management plan.
Counseling designed to help consumers develop their money management skills, especially in the sense of responsible credit use, debt management and consolidation. See more in Credit Counseling Agencies.
Credit counselors will help you put together a debt repayment plan and may even be able to help you reduce repayments with creditors.
A term referring to the debt management industry. Generally non-profit organizations, they help consumers find a way to pay off debts through budgeting and planning.
Advice given by professional counselors to people about how to use credit responsibly and how to get out of serious debt.
Generally refers to two events in individual bankruptcy cases: (1) the "individual or group briefing" from a nonprofit budget and credit counseling agency that individual debtors must attend prior to filing under any chapter of the Bankruptcy Code; and (2) the "instructional course in personal financial management" in chapters 7 and 13 that an individual debtor must complete before a discharge is entered. There are exceptions to both requirements for certain categories of debtors, exigent circumstances, or if the U.S. trustee or bankruptcy administrator have determined that there are insufficient approved credit counseling agencies available to provide the necessary counseling.
Professional counseling provided by organizations that help consumers find ways to repay their credit and get their financial affairs in order through the careful budgeting and management of money.
Many universities, military bases, credit unions and housing authorities operate nonprofit financial counseling programs. Some charge a fee for their services. Creditors may be willing to accept reduced payments if you are working with a reputable program to create a debt repayment plan.
Counseling that explores the possibility of repaying debts outside of bankruptcy and educates the debtor about credit, budgeting, and financial management. Under the new bankruptcy law, a debtor must undergo credit counseling with an approved provider before filing for bankruptcy.
Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education.
