Understanding Debt Counseling
When you sign up to work with a financial coach or personal life coach, you may be wondering if it will take care of your financial trouble such as credit card debt. Paying a financial coach isn’t the same as receiving debt counseling from a reputable non-profit organization. A credit counseling agency differs from a personal life coach in a variety of ways.
Mainly, a credit counseling agency can help you pay back your creditors, negotiate a lower interest rate and eliminate late payments. A personal life coach can give you advice and motivate you to improve your life. A financial coach often charges by the hour or has specific fees for consultations and coaching sessions.
Receiving tools you need
When you are burdened with massive credit card debt or phone calls from bill collectors, you may wish you could get it to stop. Talking to a financial coach may help you feel better, but doesn’t solve the root of the problem. With debt counseling through a licensed credit counseling agency, you will get the educational tools you need to change your financial situation. Just like with financial coaching, you will learn how to set a budget and goals, plan and differentiate between wants and needs.
Building up your credit score
By taking classes administered by education specialists at Christian Credit Counselors, you can learn how to effectively use credit cards. You’ll learn about the nuances of credit reports and credit scores. Having a good credit score can help you qualify to buy a home or car at a lower interest rate. It can even affect your chances of getting some jobs or qualifying for a rental home in some cases.
Avoiding bankruptcy and scams
Another benefit of debt counseling is that it can lead to debt consolidation and paying of all your debt at a better interest rate for you. A financial coach may “coach” you into declaring personal bankruptcy, which can devastate your credit and cause embarrassment. A life coach may also recommend you try debt settlement which is often a for-profit company that charges hundreds in start-up fees. A debt settlement approach leaves you owing taxes on the debt that has been forgiven as well as a ruined credit score.
At Christian Credit Counselors, we provide debt counseling so you can ideally pay off debt 80 percent faster. We help you make progression on your principle balance so you can quickly and methodically pay off all your debt.
Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.