Credit Counseling

Credit counseling (known in the United Kingdom as debt counseling) is a process that involves offering education to consumers about how to avoid incurring debts that cannot be repaid through establishing an effective Debt Management Plan and Budget. Credit counseling is usually less typified by functions of credit education or the psychology of spending habits, rather credit counseling establishes a planned method of debt relief, typically through a Debt Management Plan.

Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.

Read more about Credit CounselingCommon Features of Debt Management Programs, History of Credit Counseling, Criticism of Credit Counseling (USA), Cautions Regarding Credit Counseling (Canada), Debt Counselling in South Africa and The National Credit Regulator

Other articles related to "credit counseling, counseling, credit":

Money Management International - Industry Accreditations
... As a member of all three of the credit counseling industry’s trade associations, the Association of Independent Consumer Credit Counseling Agencies (AICCCA), the National Foundation ... involved in the Education, Technology, Counseling, Compliance, and Finance committees of the NFCC Membership in AICCCA is based on strict adherence to a high ... way that is secure and equitable to both consumers and credit management personnel ...
Chapter 7, Title 11, United States Code - 2005 Bankruptcy Law Revision - Credit Counseling
... to filing the debtor received an “individual or group briefing” from a nonprofit budget and credit counseling agency approved by the United States trustee or ...
Credit Counseling - Debt Counselling in South Africa and The National Credit Regulator
... The National Credit Regulator (NCR) was established as the regulator under the National Credit Act No ... and is responsible for the regulation of the South African credit industry ... The NCR is also tasked with the registration of credit providers, credit bureau and debt counsellors and with the enforcement of compliance with the Act ...

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