5.13.20

Is a credit counseling service right for you?

Tags:

Young woman thinking with pen while sitting at a desk.
Credit counseling at Consumers

Visit GreenPath online or call their counselors at 1-877-337-3399 if you have questions about credit counseling.

Learn more

Yes, this is an article about debt. No, it’s not going to debt-shame you.

If you’re running up debt and barely making ends meet, you’re in good company. According to a Gallup poll, even before the COVID-19 pandemic hit, 40% of Americans were in the same situation. In addition to the financial toll of owing more than you can pay, debt creates a tremendous amount of anxiety and guilt. It’s a lot to bear, but help is available! Credit counseling can be a valuable first step toward financial wellness. Here’s what you need to know to decide if it’s right for you.

How does a credit counseling service help?

A credit counseling service helps people pay off debt faster and save money. Companies, like our partner GreenPath Financial Wellness, design debt management plans that help people pay off their debt in three to five years. Here’s what to expect:

  • A credit counselor works with you one-on-one. First, they’ll review your financial situation. They’ll gather information on what you owe on your credit cards, medical bills and other debt.
  • Next, they’ll work with each of your creditors to get lower interest rates, lower monthly payments, and an end to late and over-limit fees.
  • After new, more favorable terms are negotiated, your debt is consolidated and you make a single payment directly to GreenPath. In turn, they pay your individual creditors. The timing of payments is coordinated with your pay schedule.

As a Consumers member, you get free, unlimited access to GreenPath counseling services. However, there are fees for administering a debt management plan that vary by how much debt you have. (For example, there is a one-time set up fee of $0-$50, and monthly fees range from $0-$75.) However, many people find the fees less expensive compared to their original interest rates, late fees and over-limit fees.

Your spending habits will change with credit counseling

The objective of a debt management plan is to pay off debt, so your existing credit card accounts will be closed. Your debt management plan will likely allow you to keep one card for emergencies or travel. This means you’ll have to pay for purchases by debit card, or with cash or checks.

How else can credit counseling help?

In addition to assisting you to get debt under control, a credit counselor can help with budgeting, improving your credit score, and avoiding bankruptcy, foreclosure or repossession.

How to get started with credit counseling

Visit GreenPath online, or call their counselors at 1-877-337-3399.

When you need personal banking answers or a Credit Smart loan that you can use to build a credit history in order to get an auto loan or credit card, call us at 800-991-2221. We make it easy to bank how you want, when you want.

Federally insured by NCUA

Credit counseling at Consumers

Visit GreenPath online or call their counselors at 1-877-337-3399 if you have questions about credit counseling.

Learn more

Leave a Reply

Your email address will not be published. Required fields are marked *

Enter your email address to receive notifications of new posts by email.

Get awesome new content delivered straight to your inbox.