Credit Counseling

Defy Debt with Credit Counseling

On another page on our site, we discuss how nice it would be if there was a credit card debt repellent. Even though there's really no such thing, credit counseling can serve the same purpose. How? Through credit counseling, you can learn how credit cards work, how to shop wisely, how to budget and how to live within your means.

Credit counseling isn't just for people in debt or people with bad credit, either. Even if you aren't in debt and you have good credit, you can benefit from credit counseling. There are people with no debt who live paycheck to paycheck who want to have a savings account and want to buy a house someday and have similar other goals. But it just seems like there's never enough money. But credit counseling teaches you how to build a savings account and how to reach other goals like a house, retirement or a child's education.

If you are in debt, consumer credit counseling will probably suggest that you get a copy of your credit report to make sure it's correct. Starting in 2005, you're entitled to a free copy of your credit report from each of the three credit reporting agencies--TransUnion, Equifax and Experian. Make sure they are all reporting the same information and there are no discrepancies.

Next, the credit counseling agency will probably recommend a debt management program for your situation, then teach you skills and techniques to stay out of debt. They can also help you through that transitionary period when your debt management program begins and living on credit cards ends.

There really is hope, and credit counseling can help you find it.

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