Frequently Asked Questions

What is Credit Counseling?

Credit Counseling is the process in which an individual or family works with a credit counselor to discuss spending habits, spending trends, and personal financial goals. Through this counseling process, the credit counselor’s objective is to present each client with a Personal Action Plan which describes steps a client should take in order to accomplish their goals.

In most credit counseling situations, a counselor will go through an in-depth budget/spending plan with the client to help evaluate the client’s current situation. The counselor will reference the spending patterns when developing a Personal Action Plan.

The credit counseling experience is a great opportunity to share your heart in a confidential environment while the counselor offers options to help better your situation.

Is Credit Counseling the same as a Debt Management Program?

No. Credit Counseling is the process of discussing your situation and evaluating your options. Through the credit counseling experience the counselor will help to determine the cause of the financial distress and assist in the implementation of steps to ensure future financial success.

A Debt Management Program is a separate program that a credit counselor could recommend for those clients that would benefit from such a program.

Is a Debt Management Program the same as a Consolidation Program?

Yes.  A Debt Management Program is the proper industry term often referred to as a Debt Consolidation Program.

How is Credit Counseling different from a Debt Management Program?

Credit Counseling is the process of actually counseling each client to determine the reasons for the current financial situation while also working to determine a resolution. A Debt Management Program is the process of consolidating all your unsecured credit into one monthly payment. The common benefits of a Debt Management Program would be reduced interest rates, reduced monthly payments, and reduced time-frame for payoff.

If I want to enroll onto a Debt Management Program do I need to go through Credit Counseling?

Yes. Everyone that has an interest in consolidating their debt must go through the credit counseling program. In order to best determine if a consolidation program is a good fit for you, we require you to work with a credit counselor. In many cases a credit counselor may offer suggestions or options that would allow you to handle your debt on your own. If the credit counselor determines that the consolidation program would benefit you, the counselor will offer the program as an option.