What is the purpose of credit counseling?

The purpose of credit counseling is primarily to assist individuals in managing their debt and improving their credit. Credit counseling organizations typically offer services that help consumers evaluate their financial situation, understand their credit reports, and create a plan to reduce their debts. They provide education on budgeting and financial management, which can lead to better credit scores over time.

This proactive approach enables individuals to develop more effective strategies for tackling their financial challenges, ultimately leading them toward financial stability. It is distinct from investment advice for businesses, loan approval processes, and managing bank accounts, as those functions serve different financial needs and goals. Instead, credit counseling is specifically designed to empower consumers to take control of their personal finances and make informed decisions regarding their credit and debt.