Advice From A Credit Counselor

Credit counseling is one of the most underutilized services among debtors today. While anyone in the Dallas bankruptcy process will be required to participate in a credit counseling course, these services can benefit anyone. The knowledge and information gained from a credit counselor can be invaluable and put anyone in a better financial position.

The Dos and Don’ts

Any good credit counseling agency will be able to offer a variety of services. Whether you are looking for information about how to boost your savings, ways to invest wisely, find a good debt relief strategy or simply plan for your retirement, a credit counselor can help. However, it is often a good idea to start with the basics of smart money management.

• DO prioritize saving money. Have at least three to six months worth of your salary saved in case financial hardship strikes.
• DO create and follow a budget. Research shows that people who list their expenses and keep track of their money monthly have more secure finances than those who don’t.
• DON’T abuse your credit accounts. Debt is essential for maintaining a good credit score, but carrying high balances can be detrimental. Balances should be less than 40% of the total spending limit of the card.
• DON’T wait until it is too late. Debt management takes practice and purpose. Waiting until you have missed a payment can make debt negotiations much more difficult or leave your secured debt assets at risk of liquidation.