Credit Counseling
The term credit counseling used to be limited to non-profit agencies that helped consumers develop their money management skills, especially in the sense of responsible credit use, debt management and consolidation. The term has currently expanded in use to encompass for-profit businesses that, with varying degrees of legitimacy and success, provide similar services to consumers.
Among some of the specific services offered by credit counseling services are budget counselling, educational programs, and direct assistance with debt management. This direct assistance can take the form of negotiating a reduction of the debt.
Credit counselling is widely available via the Internet, over the phone and in person. It is even easy to find services in Spanish. For those who are inexperienced in credit matters, it is recommended to take advantage of some of the many free or low-cost educational programs, with the goal of learning to make the most of credit opportunities and avoid some of the most common credit problems.