As more families feel squeezed by rising costs and growing debt, credit counseling might offer a path forward.
But many people are not sure what it is or when to turn to it.
What is credit counseling?
Credit counseling is often offered by nonprofit agencies to help people understand their finances and create a plan to get out of debt.
Counselors review your full financial picture, including:
- Income and monthly expenses
- Credit card balances and interest rates
- Other debts, such as medical bills or personal loans
From there, they work with you to:
- Build a realistic budget
- Explore repayment strategies
- Potentially enroll in a debt management plan, which can consolidate payments and reduce interest rates
The goal is not quick fixes but a structured,…