N@N

Credit Counseling Explained: How It Works and When To Use It

Credit counseling is a service designed to help individuals manage their debt and improve their financial situation, as outlined in an article on MSN Money. It involves working with certified counselors who provide personalized advice on budgeting, debt management, and financial education. These counselors can negotiate with creditors to lower interest rates or waive fees, and they often help set up Debt Management Plans (DMPs) where monthly payments are consolidated and distributed to creditors. Credit counseling is particularly beneficial for those struggling with unsecured debts like credit cards, medical bills, or personal loans. It's recommended when someone feels overwhelmed by debt, is at risk of bankruptcy, or simply needs guidance on financial management. The article emphasizes that while credit counseling can be a proactive step towards financial stability, it's important to choose a reputable agency, ideally one that is accredited by organizations like the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).

Read the Full GOBankingRates Article at:
[ https://www.msn.com/en-us/money/economy/credit-counseling-explained-how-it-works-and-when-to-use-it/ar-AA1Bg3rz ]