When Debt Counseling Is Needed?

We hear a lot about debt counseling and everyone can agree that it is a good service to utilize in theory. Most credit repair agencies offer debt counseling for free making many consumers question its actual value.  People who hire credit repair agencies feel that they are buying services only to eliminate their debt and may feel they do not need to understand what and how debt is handled or created. Wrong.

Just like a doctor would advice a patient on what has caused them to become ill so they will not get sick again; debt counseling teaches you how to manage your money so you will not fall into trouble with your finances again. It is very important that you understand the why before you can appreciate the solution. You are less likely to abuse your available credit if you understood how the bulk of smaller purchases compounded the large debt you accumulated.

Debt counseling also teaches you how to use your finances to increase your credit score and much more, such as:

-    How to save for an emergency fund
-    How to find the best interest rates
-    How to make and stick to a monthly budget
-    How to find the best health/ home/ auto insurance quotes

… and much more. Debt counseling is a priceless gift – make sure you value it as such.

Source:  When Debt Counseling Is Needed?

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