Credit counseling is a service provided by certified counselors to help individuals manage their debt and improve their financial health. Credit counseling agencies offer a variety of services, including budgeting assistance, debt management plans (DMPs), and financial education. During a credit counseling session, counselors assess an individual's financial situation, provide personalized advice, and develop a tailored plan to address their debt. If a debt management plan is recommended, the agency negotiates with creditors to lower interest rates and consolidate payments into a single monthly amount. The goal of credit counseling is to help individuals reduce their debt, improve their credit scores, and develop sustainable financial habits. These services can be particularly beneficial for those struggling with debt who need structured support and guidance to regain control of their finances.
