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5 Signs You Need Credit Counseling


If any of this sounds like you, a nonprofit credit counselor can help you get back on track.

If you’re in debt and struggling financially, telling another person the extent of your financial problems can seem daunting. But a meeting with a credit counselor in a non-profit credit counseling An agency can help you get out of debt, improve your credit, and start saving for important financial goals like buying a home or starting a family.

Credit counselors at nonprofit credit counseling agencies are not out to judge you or make you feel bad for not being able to pay your bills on time or manage your money effectively. Instead, a credit counselor can help you with several financial aspects, including:

  • Creating a budget
  • Find ways to improve your credit score
  • Working out payment plans with creditors
  • Creating a debt repayment plan
  • Construction savings
  • Improve financial literacy with classes on home buying, understanding student loans, and more

Wondering if you’re a good candidate for credit counseling?

If any of these five signs sound like you, you may benefit from meeting with a credit counselor at a nonprofit credit counseling agency.

You can’t pay your bills on time

If you’re constantly deciding which utilities to pay and which to put off for a few weeks, or whether to make a credit card payment instead of a monthly car payment, you might find these tips on budgeting and paying off debt helpful.

A credit counselor can help you create a monthly budget that will help you better manage your money and identify areas where you can cut back.

Find out: 4 ways to catch up on bills if you’re behind

You’re head over heels in debt

If you have thousands of dollars in credit card debt that you’re struggling to pay off — or even pay on time — you may want to consider credit counseling. A credit counselor can help you work your payments into your budget and develop a debt repayment plan with an end in sight.

Find out: 5 signs that you have too much debt

You have bad credit

If you have a poor (below 580) or fair (between 580 and 669) FICO score, these three numbers are likely to prevent you from getting a car or other loan at a good interest rate, getting approved for credit cards, and possibly even getting a job if the prospective employer conducts a pre-hire credit check.

A credit counselor can get a copy of your credit report, show you areas where you need to improve, and give you tips on how to improve your credit score to good (670 to 799), very good (740 to 799), or exceptional (800+). ).

Find out: I found out I have bad credit. What now?

You are stressed because of debt

According to a 2020 study, people with medical debt are three times more likely to have mental health problems like depression, anxiety and stress because of debt worries research by AIMS Public Health. But it’s not just medical debt that can keep you up at night and make you irritable, anxious, and depressed.

If you’re losing sleep over debt and other financial problems, meeting with a credit counselor is a good first step to getting back on track and learning good money habits so you don’t end up in the same situation later.

Find out: Debt can destroy your mental health

Collectors are calling

If debt collectors leave messages, call you at work, or send urgent letters for payment, it’s time to get help. A credit counselor may be able to work out payment plans or settlements with debt collectors. A consultant can also help you fit the payments into your monthly budget.

Find out: 8 ways to fight debt collectors

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