Basic Requirements for Credit Counseling

What are the Basic Requirements for Receiving Credit Counseling?<

Requirements for credit counseling vary by program. Some programs will only accept clients on the verge of bankruptcy, while others are less stringent in their requirements before their service can be offered. Either way, if you have credit card debt or personal, unsecured loans, such as payday advances, in excess of $5,000, you will usually qualify for one program or another.

Other requirements may include:

• Certification that you are not involved with another debt consolidation or credit counseling service
• Willingness to do without access to your revolving accounts (credit cards) once the program begins
• Applying the program: (Making regular payments to your debts)

What Does Credit Counseling Involve?

First, the credit counseling service must get to know you and your finances as well as you do. There will be an extensive application process wherein you will list all of your debts and your income. Your counselor will then make a recommendation to you (or several) for the best way of eliminating or reducing your debt significantly within as short a period as possible.

Once you have received your initial consultation, which is usually free, you will be asked to formally enroll in the program. If you choose to, the plans that were offered to you will be set in motion, to eliminate your debt within the next 4 to 8 years, usually. Payment for the credit counseling services will be required at this time and may be ongoing depending up on the plan and provider you choose.

In a relatively short period of time, you will begin to see the results of the credit counseling service as your bills and debts are managed more efficiently and your creditors are getting paid. As long as you keep up whatever your end of the program is, often you will find yourself approaching debt freedom in no time. For more information, our frequently asked questions may have some answers you are looking for.