National Foundation For Credit Counseling

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For any individual, coming to terms with needing credit counseling can be difficult as they often struggle with overcoming guilt, shame and privacy concerns. But when a person struggles to make the minimum payment on a credit card bill, it is time to seek counselling and assess one’s expenses. Anyone dealing with financial distress would benefit seeking credit counselling from a debt management program; they negotiate lower interest rates and payments so the person can pay off their debts. The National Foundation for Credit Counseling (NFCC) is one recourse where certified consumer credit and debt counselors will advise money management, offer solutions to current financial problems and develop a personalized plan to help prevent future difficulties.
The average U.S. household with at least one credit card owes nearly $15,950 in credit-card debt yet only a fraction of people seek aid from a credit counselor. To determine if credit counselling is necessary, most counselors recommend the debt to income ratio. According to Thomas Bright, a certified credit and debt manager, “…15 percent and below is considered a safe level. Between 15 and 20 percent is considered to be a sign of trouble. And, 20 percent or above is considered to be a red flag and a sign of a dangerous situation” (1). Most of these people with serious money problems do …show more content…

There are hundreds of profit and non-profit companies available to aid people with overwhelming debt. Many non-profit organizations offer free of cost counseling sessions and provide charge free debt management plan. This includes the The National Foundation for Credit Counseling. Through comprehensive counselling online and in person, individuals learn valuable money managing and budgeting skills. In 2010, over 3.2 million consumers took advantage of financial counseling in through online

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