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What is Financial Counseling? What is Credit Counseling? What are Debt Management Plans? What’s the Difference?!?!?

What is Financial Counseling?  What is Credit Counseling?  What are Debt Management Plans?  What’s the Difference?!?!?



Financial Counseling can also be called budget counseling or financial coaching.  This is a service provided by many nonprofit or for-profit service providers to review a personal budget.  An agency offering Financial Counseling may or may not be offering Credit Counseling and Debt Management.  When a Credit Counseling organization offers a Financial Counseling session, it will always include components regarding Credit Counseling and Debt Management. 



Credit Counseling and Debt Management are often synonymous when locating information.  While very closely related, they are not the same activity.  Let’s first review what each of those truly are:

·Credit Counseling is the process where a counselor reviews a consumer’s budget debt scenario that can be resolved through all the various methods available; including, 1) self-budgeting and power payment methods, 2) consolidati…