The last thing that you can do to clear your bad credit record and debt is credit counselling.

Credit counselling is when a counsellor advises people on resolving their financial problems and difficulties. This is an alternative to debt settlement.

Similarly, a credit counselling agency has financial advisors, which are available to give you as individual and bespoke advice on debt settlement and other financial situations through the best options that will suit you.

Two types of credit counselling agencies

They are Non-profit and For-profit (those that include high fees).

Credit counselling can be a very positive experience, but then you must be 100% committed to the process, and also be upfront and forthcoming about your financial situation.

Remember a credit counsellor will only be able to help you if you are honest and if you are willing to get the necessary help to get out of debt. It may sound strange to some, but it always helps if you have a trustworthy counsellor on your side helping you.

You might think that credit counselling is not for you, or you might be wondering when would be the right time to seek help from a credit counselling company.

Below are a few signs that will help you decide, and if you recognize some or all of these, then considering credit counselling might be a good idea.

1. If you can’t pay for living expenses.

If you are struggling every month to pay bills, buy food and have money left for utilities, then you might want to get some advice on budgeting.

2. You don’t know exactly just how much debt you really owe.

Payoff amounts and interest on accounts can be confusing. Are you just paying the minimum payments every month to make sure the creditors stay away from you?

If this sounds like you, you need to get help. A counsellor can help you figure out exactly how much you owe.

3. Are you paying credit card bills with other credit cards?

This might sound familiar to many of us, but you have to remember, by doing this you are only getting yourself further into debt. Talking to a credit counsellor in this situation might be a good idea.

Just keep in mind, credit counselling is a good option, but there is one disadvantage – it will go on your credit report. Although it doesn’t affect your credit score, it might make things difficult in the future if you want to get a loan.

So setting up your very own budget plan or talking to a trusted friend, family member or mentor can be an alternative to seeking credit counselling.

You just have to follow the right steps, whether you are using debt consolidation, cash loans, credit counselling or other ways.

Living without debt is a reality.