There is really no wrong time to talk with a trained budget and credit counselor.
Do you spend more than you make each month and need help reviewing your finances?
Are you financially overwhelmed and struggling to pay your bills each month?
Has an income reduction made previously manageable
debts unmanageable?
Are mounting medical bills or a recent divorce causing financial strain?
No matter what financial issues you are dealing with, the first and most important
thing to remember is that you’re not alone.
Credit counselor companies and entities offer a variety of personalized services
to help consumers gain control of their finances. A credit counselor can work
with you to develop a personal financial assessment by analyzing your income, expenses,
assets and liabilities. As a team, you and your counselor can work together
to create a livable spending plan and establish an action plan for achieving your
financial goals.
Contacting a counselor is easy and most appointments are free, so there is nothing
to lose.
How to Prepare for Your Credit and Budget Counseling Appointment
It is not necessary to spend a lot of time and effort preparing before talking with
a counselor. In fact, for many people, making the call is the first and most
important step to improving their financial situation. Rest assured that most
counselors are well trained and are more than happy to help you walk through the
entire counseling process.
That being said, if you do have the time to start thinking about some aspects of
your finances before speaking with a counselor, it may help to streamline the process.
First, consider all of your sources of income. Sources of income might include
money received from paychecks, rent, Social Security, and child support. Think
about the amount of income you can expect to earn in the future. If your income
fluctuates, you will want to be sure to tell your counselor so he or she can help
you manage the changing circumstances.
Next, identify who you owe and how much you owe. Pulling copies of your latest
statements can help with this process. You can also request free copies of your
credit reports
annually from AnnualCreditReport.com.
Don’t worry if you do not have recent copies of your statements or your reports,
your counselor can assist you with the identification process.
Next, think about where your money is going. It might be helpful to consider that
there are three main types of expenses:
Variable expenses are those that vary from month to month, such as clothing and
food.
Fixed expenses are those that do not vary from month to month. Examples of
fixed expenses include car payments and mortgage or rent payments.
Periodic expenses are those that are not paid on a regular monthly basis.
For example, both holiday and tax
debts are periodic, meaning they are not part
of regular monthly expenditures.
Finally, think about your financial goals. Identifying where you want to be
in the future will help you and your counselor develop a plan of action. Remember
to set goals that are realistic and flexible.
If the process of preparing for an appointment seems overwhelming, then don’t do
it! The best thing you can do is to take that first step by talking to a counselor.