Moneyzine
Contents
/Personal Finance/Debt Counselor

Debt Counselor

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 25th, 2023
Advertiser Disclosure

Definition

Also known as credit counselors, a debt counselor is a trained professional that can assist individuals experiencing a financial crisis to develop a plan to reduce, eliminate, or better manage debt. Debt counselors can use a variety of methods to help individuals, including techniques such as budgeting, debt negotiation, and debt consolidation.

Explanation

Debt counselors are often trained to help identify underlying family situations that need to be resolved before the individual or family can recover financially. In this situation, the debt counselor might refer the individual to a social service agency that can help with these matters.

Debt counselors are often associated with not-for-profit organizations, and can be a valuable service to those in need. Unfortunately, there are some debt counseling organizations that prey on the newfound vulnerability of the same people that are in need of help.

The National Foundation for Credit Counseling, or NFCC, is a non-profit organization that is dedicated to the setting of standards for debt and credit counseling. The NFCC, through its member agencies, has created the oldest and largest counseling network in America. Members of this network can be identified by the NFCC member seal.

These debt and credit counselors are certified, and are trained, to provide consumers with the help they need to realize long term financial strength. Many of these agencies offer free services, or charge nominal fees to cover operating costs.

Related Terms

Related Content

How to Make a Million Dollars in 10 Years
Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
March 26th, 2024
How to Apply Maslow’s Hierarchy to Your Money This Year
You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
March 27th, 2024
How to Tackle Multiple Savings Goals
When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
March 22nd, 2024
The Countdown to Early Retirement: 10 Expenses to Eliminate
Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
March 22nd, 2024
What’s Your One Page Financial Plan? Mapping out Your Future
“What’s your one page financial plan?” — This is the absolute best question that I’ve heard asked in a long time. Instead of talking about your hot stock pick or your fancy investment that shields you from paying taxes, I think it’s time for all of us to step back and ask ourselves the most intelligent question of all, “Why the heck do I care about money anyway??”
March 14th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.