When you first meet with a credit counselor they will go over your monthly bills, your overall debt, and your income. Using this information they can design a budget for you to follow. By following a budget you will find that you have more money available when an emergency arises.

A credit counselor will be able to help you set up monthly payments that are manageable for your debt. Paying your debts on time is a very important factor when considering your credit score. By following a budget and making monthly payments towards your overall debt you will be able to rebuild your credit score over a period of time. In addition to increasing your credit score you also will find your overall debt level decreasing as you continue to pay on it each month.

A credit counselor will teach you how to track your spending. By tracking your spending you are oftentimes able to visually see where you waste money on needless items. Eating out at a restaurant for lunch may seem cheap, but if you do it daily it can easily add up to a large amount of money. By tracking your income you will be able to see how much you truly spend eating out for lunch at a restaurant each day. If you cut back on the needless spending you can pay down your debt faster.

A credit counselor can also work with your debtors and negotiate a lower interest, a lower monthly payment, and in some cases even a reduction of the total amount due. A credit counselor will help you to build up a “rainy day” fun to be used in emergencies. If your car breaks down then you have the money to get it fixed.

A credit counselor is a very valuable resource to use if you want to get out of debt and rebuild your credit score.