Self Help

Unfortunately, there is no magic wand to make all your financial problems disappear, but a good certified credit counselor will always offer solutions. Expect more than one solution, and expect some solutions you don’t like. Your counselor will give you a balanced perspective of what you need to do, how long it will take, and what resources are available to help you along the way. Your counselor will probably discuss bankruptcy, as well as other solutions. The counselor will propose solutions not just in the light of your current situation, but in light of your future needs.

A good credit counselor offers solutions with your future goals in focus. A solution that works best for you is one that not only deals with current issues but takes into account how you see your future. For example, if you’re planning to buy a house, get a security clearance at work, or send your triplets to college in five years, that future goal will affect the course of action that will best fit your needs.

For about 75 percent of the over 1 million people who bare their souls to credit counselors each year, advice and direction are all they need. An unexpected by-product is improved financial communication. For many couples and families, credit counseling is the first time that goals, spending priorities, and even some secrets such as hidden debts are openly discussed.

Expect to have a customized action plan when you’re finished with your credit counselor. To be useful, an action plan has to fit you and the way you live. If it doesn’t, you won’t follow it. You don’t wear clothes that are too tight - and you won’t follow a poorly fitted financial plan. A comfortable budget designed with your spending and saving style in mind is more likely to be something you’ll follow. If you’re struggling toward the abyss of debt, a good credit-counseling agency can help you understand how you landed in your predicament, what you need to do to correct the problem, and how to maintain your good financial reputation.

Expect some fine-tuning as you go. Although your counselor will anticipate as much as possible when developing your plan, he can’t foresee the future. Murphy’s Law applies to credit counseling in spades. Not only can things go wrong, but with limited financial resources, every bump in the road will feel much worse. Ongoing involvement with your credit-counseling agency as you navigate this credit-repair journey will help you stay the course. Expect the agency to make this easier for you, by giving you names, e-mail addresses, and phone numbers of people to contact beyond the agency for more help. You should be able to go back to your counselor for additional suggestions and referrals as you go along although most people, when they have a workable plan in hand, are off on their own.