Ways Credit Counseling Can Get Your Finances Back on Track

In many cases, it doesn’t take long for a small financial hiccup to become a mountain of debt. If you are struggling under the weight of unmanageable debt, it can feel like you are running out of options. The good news is you probably have more options than you think. 

For those running circles around their debt, there are several ways to get it under control. You have the option of debt consolidation if you qualify, or you can choose to work with a bankruptcy trustee. They can assess your situation to guide you on the best program for your situation, such as a consumer proposal, which is essentially a contract between you and your creditors to pay a reduced balance on your debts.

When you work with a licensed insolvency trustee like Doyle Salewski, they help you to understand how you got into trouble and teach you the skills you need to move towards financial security. Let’s take a closer look at a few ways a credit counselor can help get you back on a solid financial track.

Credit Report Review

The first step your credit counselor will take on your behalf during credit counseling is to examine your current financial situation, starting with your credit score. They will request a copy of your full credit history to better understand how they can help. Your counselor will review your report with you, examining each tradeline to uncover errors or inconsistencies affecting your score. Once your credit report is reviewed, you will better understand your situation and how to move forward.

Debt Management Plan

Your licensed insolvency trustee can act on your behalf to negotiate with your creditors. If you carry a lot of debt, you likely have multiple payments piling up. Your counselor will contact each of your creditors to find a suitable repayment agreement. You can then pay a monthly lump sum to your credit counselor’s firm, which will send the payments out on your behalf. 

Debt Relief

Bankruptcy trustees have the experience needed to effectively negotiate with creditors. During credit counseling, they can often cut a deal on what is owed, eliminating some accumulated interest and reducing payments. Credit counselors understand that the primary goal of any lender is to get as much of their money back as possible. They would rather make a deal for reduced payments than not get anything.

Credit Education

Using a debt consolidation company to assist you with your financial issues will help get you out of trouble. However, you won’t benefit from the education you need to stay out of debt. To help keep you from making future mistakes with money, your counselor will educate you about how credit works, how to build your score, and how to maintain good credit. 

Establish Healthy Financial Habits

When you work with a credit counselor on credit counseling, they will focus on both making viable payment arrangements for your current debt, but also teach you ways to avoid falling into the same credit traps in the future. Your education will give you the confidence you need to make solid financial decisions and maintain a solid financial standing. 

If you are one of the millions of people struggling with debt, now is the time to make a change. Contact a bankruptcy trustee  service to help you get back on a strong financial path.