Should you opt for credit counseling?

| Sep 20, 2019 | chapter 11, chapter 7 | 0 comments

If you are a Kentucky resident and feel as if you are swimming in debt you have no control over, there is no reason to think you must handle it all on your own. You have options and people who can help you. One of those options is bankruptcy, although many consumers decide to try credit counseling before deciding if bankruptcy is the right option.

According to Credit Karma, credit counseling provides support to help organize your finances and manage your debt. It is often provided by nonprofit educational or financial organizations. During credit counseling, a counselor may review consumer debt, credit reports and your household budget, all with the intention of finding a way to improve your future and financial situation.

A credit counseling session consists of you being paired with a credit counselor who provides feedback on ways to improve your family’s situation. Credit counseling may include the following:

  • Credit report review
  • Budget help and software
  • What steps to take to immediately improve your situations
  • Referrals to additional resources and tools

During your credit counseling session, your counselor may suggest a debt management plan. These are intended to help you pay off debt faster by setting up payment schedules and lowering interest rates. Although debt management can be beneficial, it is not necessarily the right choice for everyone and is often a last-ditch option.

Credit counseling can be helpful not only to those who are in a dire financial situation because of debt, but also for those who simply want to get their finances in order before they get out of control. If you feel you have passed the point where counseling will help, bankruptcy is an extremely beneficial option. A bankruptcy attorney can help walk you through the process of applying.

This is for educational purposes and should not be interpreted as legal advice.