Debt that you can’t seem to eliminate on your own can create a feeling of helplessness and frustration. Many Americans report feeling overwhelmed at the prospect of managing their ever-mounting debt. Seizing on this problem, debt counseling offers those who are struggling with debt a pathway toward gaining their financial freedom. But what exactly do these services offer, and more importantly, do they work? Here’s a closer look at debt counseling and how effective it might be at helping you manage or even eliminate your current debt.

Debt Counseling & What Does A Debt Counselor Do?

Many people are facing crushing credit card debt with high interest rates. Generally, a debt counselor will analyze your financial situation and try to help you better manage your finances. This often involves the counselor and you gathering all information about your creditors and devising a workable repayment plan. This plan may involve debt consolidation or debt settlement. Both of those options carry potential consequences to your credit score and credit worthiness, but they still might be viable solutions for you because they involve a reduction of your debt.

Debt counseling may also help you devise a method to stay current on your obligations. This will likely involve creating a monthly budget and sticking to it. Particularly, the debt counselor may look at your monthly income and bills. They’ll help you determine which obligations should be paid first, and which expenses you should eliminate. The counselor will evaluate what you purchase in a typical day. With that information, they can provide you with a snapshot of your spending habits and can pinpoint areas where you can conserve. Maybe you don’t need all of those subscriptions. Maybe you are overpaying for essential goods. All of this will come into play for purposes of improving the way you spend money.

Debt Counseling & Are Debt Counselors Effective?

Generally speaking, effective debt counselors place an emphasis on managing your debt with the least amount of harm to your credit worthiness. What a debt counselor may do for someone with lots of credit card debt may be quite different than what they may do for someone facing foreclosure on their home. The goal is the same: help you retake control of your finances. No one solution is going to work for every consumer, so it is important that your debt counselor look at your individual circumstances and craft a plan that will help you meet your unique needs and financial goals.

Florida Bankruptcy Lawyers Are Here To Help You

Debt counselors can be effective at helping debt-ridden folks manage and consolidate their obligations. However, for those who have reached a breaking point because of their debt situation, it may be wise to consult with an experienced bankruptcy attorney. The Bankruptcy Team helps our Florida clients resolve financial dilemmas through bankruptcy or other legal avenues. To consult with The Bankruptcy Team, PLLC, call or contact us today.