What is Debt Counseling?

There is a lot of shame and stigma attached to debt. But the truth is that having debt doesn’t make you bad or irresponsible person. In fact, if you’re struggling with debt, you’re not alone.

Here’s the good news: if you’re ready to seek help and find a debt solution that works for you, then debt counseling might be able to help.

Debt counseling

Debt counseling is typically offered through credit counseling agencies and is often called “credit counseling” as well.

The process of debt counseling is simple: you meet with a trained credit counselor. The counselor thoroughly reviews your finances and then makes personalized recommendations.

When you connect with a credit counselor, there are no fees or obligation to work with the company. In other words, it’s a win-win for your bank account.

Read more: What Does a Credit Counselor Do?

Debt counseling steps

Contact a counselor

The first step is to contact a debt counselor at a reputable credit counseling agency. You can usually contact a counselor by telephone phone 24 hours a day, 7 days per week. Remember, it’s free to call.

Review your finances

The goal for debt counseling is twofold. The first goal is for you to end the call or visit with a better understanding of your overall financial health. The second goal is that you’ll leave with a plan of action. In order to achieve those goals, debt counseling sessions begin with a thorough review of your finances—debt, income, savings, assets and more.

Receive recommendations

Here’s the deal—everyone’s financial situation is different. Because of that, your debt counselor will give you personalized recommendations based on your financial review.

The journey begins

After you receive your recommendations, it’s time for you to decide if you want to embark on your journey towards debt freedom. Once you accept the plan, the journey begins.

As part of that journey, many nonprofit debt and budget counseling agencies will offer additional services and programs to address your particular goals, including programs to help you repay debt, rehabilitate a delinquent mortgage, manage your student loan payments, and more.

If you’re ready to meet with a debt counselor or learn more about nonprofit debt consolidation, Money Management International has trained financial counselors who are ready to help.

  • Better Business Bureau A+ rating Better Business Bureau
    MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
  • Financial Counseling Association of America Financial Counseling Association of America
    MMI is a proud member of the Financial Counseling Association of America (FCAA), a national association representing financial counseling companies that provide consumer credit counseling, housing counseling, student loan counseling, bankruptcy counseling, debt management, and various financial education services.
  • Trustpilot Trustpilot
    MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
  • Department of Housing and Urban Development - Equal Housing Opportunity Department of Housing and Urban Development
    MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
  • Council on Accreditation Council On Accreditation
    MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
  • National Foundation for Credit Counseling National Foundation for Credit Counseling
    MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.