What Is Credit Counseling?

Credit counseling is a service offered by nonprofit organizations, called credit counseling agencies, or credit counselors. Credit counselors work with you to develop a plan to reduce and repay your debt. These plans can be tailored to fit your situation and are often free. Credit counselors often work to negotiate lower interest and fees with your creditors. They can also help you develop a budget, set up a payment plan, and stop creditor harassment.

How is credit counseling different from bankruptcy?

Credit counseling and bankruptcy are two different ways to tackle your debt. Credit counseling is a free service. You can work with a credit counselor to negotiate lower interest and fees with your creditors. Credit counselors also help you develop a budget, set up a payment plan, and stop creditor harassment. Credit counseling is a good solution if you’re having trouble making your monthly payments, but not if creditors have started to garnish your wages, are attempting to collect on your debts,  or have filed a lawsuit. Credit counseling can help you get out of debt faster, but it isn’t always the best solution.

Getting out of debt can be a long and difficult process. It can take years to pay off your debt and get a handle on your finances. Bankruptcy is more powerful and long–lasting debt relief option. It gives you a fresh start by wiping out most of your unsecured debt. However, there are many things to consider before deciding to file for bankruptcy. Talk to a bankruptcy lawyer to find out if bankruptcy is right for you.

To learn more about debt relief solutions, credit counseling or how to eliminate your debt in bankruptcy, contact one of our Hurst bankruptcy lawyers today.