Credit counseling helps in bankruptcy recovery
- Improved financial behavior post-bankruptcy – Regarding the 12 financial practices identified as necessary to successfully recover from bankruptcy, results show that debtors’ financial behavior for all 12 practices improved significantly. Overall, behavior seemed to improve by almost 30%.
- Sustained improvement in financial behavior over time – Debtors’ financial behaviors were not only significantly improved after counseling, but remained that way 12 months after counseling, with only a slight drop-off in behavior over time.
- Proactive approach to improving financial situation — Debtors appear to be taking steps to improve their financial situations, including: finding ways to reduce expenses, increase income, and make other lifestyle adjustments.
- Longer-term financial goals are being set and achieved — Debtors indicated post-bankruptcy that they had achieved, or were working towards achieving, a number of longer-term financial goals, including: saving more money, starting an emergency fund, starting a retirement fund, re-establishing credit, finding employment, starting or completing school, buying a car or home, and becoming/staying debt free.