Millions of Americans are in debt and struggling to keep their heads above water. Fortunately, there are people who can help you get out of debt. Seeking advice from experts such as credit counselors and bankruptcy attorneys is one way to better understand your options and begin to develop a sound plan moving forward.
Credit counseling services can help
Credit counselors offer a variety of services to help you get your debt under control. Below is a list of some of the services credit counselors can provide:
- Budget planning. How you budget your money is vital when it comes to improving your credit score. Many people, unfortunately, don’t pay much attention to their budget until they’re loaded with debt. A good credit counselor will help you analyze your income and develop a budget that works with your lifestyle.
- Understanding your credit score. If you don’t know how credit scores work, then it’s very difficult to establish and maintain good credit. Credit counselors can teach you how to improve and maintain a healthy credit score and start to develop a plan for the future.
- Classes. Some credit counselors offer free classes in money management, debt, credit, mortgage, housing, and student loan counseling.
- Creating a debt management plan. A DMP is usually your last option. It involves setting up a payment schedule and lowering the interest rates on your debt. You will make monthly payments to the credit counseling organization, which they will use to pay your creditors.
When it comes to choosing a credit counselor, beware of scams and organizations that charge for information. If an organization is trying to charge you for educational classes, budgeting advice, or any other service that should be free, seek counseling elsewhere. Also, if they are trying to sell you on a debt management plan as your first or only option, it’s likely they’re in it for the money and you should explore other options.
An experienced Bronx bankruptcy attorney is knowledgeable in all aspects of bankruptcy law and debt management and can offer long-term solutions to your financial issues.