How To Get Free Credit Counseling in Arkansas
Upsolve is a nonprofit that helps you get out of debt with education and free debt relief tools, like our bankruptcy filing tool. Think TurboTax for bankruptcy. Get free education, customer support, and community. Featured in Forbes 4x and funded by institutions like Harvard University so we'll never ask you for a credit card. Explore our free tool
It is possible to find reputable free credit counseling in Arkansas by following the five-step process below. This will include suggestions on how to find the right agency, how to make sure they are reputable, what questions to ask to make sure it is a good fit, what to expect and what are the next steps.
Written by Attorney Eva Bacevice.
Updated January 14, 2025
Credit Counseling in Arkansas
If you're facing financial challenges in Arkansas, you're not alone. The state is home to six Fortune 500 companies, including Walmart, but it also has a poverty rate of over 18%. That means nearly 1 in 5 Arkansans are living in poverty. When you’re struggling financially, it can feel overwhelming to know where to start. That’s where credit counseling can help.
How Credit Counseling Works
A certified credit counselor can meet with you one-on-one — usually for 45 minutes to an hour — to assess your situation and develop a personalized plan to address your debt and get back on track. Many nonprofit organizations provide these services for free. Upsolve can help connect you to a qualified provider for a free consultation.
Credit counselors are trained in consumer credit, debt management, and budgeting. They can also provide free educational materials, help you set up a budget, and assist with reviewing your finances, including accessing a free credit report.
During your session, the counselor may recommend solutions such as debt consolidation, a debt management plan, or even bankruptcy, depending on your situation. If the organization offers a debt management plan, there may be a setup or monthly fee, so it’s important to work with a reputable, certified counselor to ensure you’re getting sound advice.
In Arkansas, you can access these services online, over the phone, or in person.
How To Get Free Credit Counseling in Arkansas
It is possible to find reputable free credit counseling in Arkansas by following the five-step process below. This will include suggestions on how to find the right agency, how to make sure they are reputable, what questions to ask to make sure it is a good fit, what to expect and what are the next steps.
Find Arkansas Nonprofit Credit Counseling Agencies
The first important step to finding credit counseling in Arkansas is to find a credit counselor from an Arkansas nonprofit organization that offers the service. The nonprofit distinction is key because you want to find an organization that is designed to help you, rather than a for-profit company that is just looking for their profit. Unfortunately, there are a lot of companies out there who are just looking to take advantage of someone already in a bad situation.
Also, simply being designated as “nonprofit” is not enough - some agencies may be hiding fees or pressure their customers in “voluntary” contributions that make the situation worse. As such, you need to be on the lookout for any red flags, such as a charge for the meeting (the first meeting with an Arkansas credit counseling service should be free) or a refusal to send free materials. Luckily some resources can help you get connected to the right nonprofit with a certified credit counselor.
If you're looking online it’s a great idea to start with the Federal Trade Commission which applies to the whole United States. They can offer suggestions on how to conduct your search. It’s also important to check that the counseling agency is properly certified by the National Foundation for Credit Counseling or NFCC. You can also check with the Better Business Bureau to find out the rating of an organization and if there have been complaints filed against it.
Information to Research Before Talking to an Arkansas Credit Counseling Agency
Before you set up your meeting with an Arkansas credit counseling agency you should verify that it is accredited as a member agency by the NFCC. To determine with you will want to begin with the Consumer Protection agency for debt relief services from the Arkansas Attorney General. Here you can learn the common red flags to avoid, and how to tell a legitimate organization from a scam. If it sounds too good to be true, chances are it is a scam. Legitimate agencies should focus on helping you manage your money and debts, learn how to create and stick to a budget and offer free financial educational materials and workshops and not push you to choose one debt relief option without explaining why.
Questions to Ask the Arkansas Credit Counselor Before Signing Up
Keep in mind that just because you decide to meet with an Arkansas credit counselor this does not mean that you have to sign up with them. You can (and should) ask about costs before signing up. Your initial session should always be free. There can be legitimate fees for some of the services but it is important to find out what those are before proceeding. If your situation warrants a debt management plan (more on this later) there can be a set-up fee and a monthly fee for the service. Both the fee and the payment should not be more than you can afford. Be wary, however, of an Arkansas credit counseling agency that pushes a debt management plan before a careful review of your finances and does not offer any other resources. You may also want to ask about how long any counseling or plan will be in place. It is always fine (and even encouraged) to request free informational materials. If the consumer credit counseling agency is unable to provide these that can be a big red flag.
What to Expect During Credit Counseling?
You can expect to have a one-on-one meeting with your Arkansas credit counselor that takes up to one hour where the counselor will spend a significant amount of time going over your finances in detail. They will look at your bills and debts, talk about your goals and challenges and work with you to come up with a personal financial plan to manage your finances. This can include debt counseling on how to manage your money and obligations, helping you develop a budget, helping you get a copy of your credit report and score, and discussing additional resources like classes, workshops or possible follow up counseling sessions. At the end of the meeting, they will generally recommend the next steps which could include debt consolidation, a debt management plan or bankruptcy.
What Happens After Credit Counseling in Arkansas?
After you have completed credit counseling in Arkansas with a certified counselor from a reputable agency it is time to move forward with your next steps for your personalized plan to become debt-free. Most often your next step will be one of the following: debt consolidation, a debt management plan or bankruptcy. Below we will discuss each of the options in more detail.
Upsolve Member Experiences
2,029+ Members Online
Arkansas Debt Consolidation
Arkansas debt consolidation involves new credit by taking out one large loan to pay off multiple high-interest debts like credit cards. Debt consolidation can be helpful by paying off your current credit card debt, having a lower interest rate on the new loan, only needing to make one payment debt repayment monthly and still having access to your credit cards. It can be problematic, however, if you do not have a high enough credit score to qualify and/or get a lower interest rate, and this will not address any unhealthy spending habits that may have gotten you there in the first place. Additionally, if you are late or miss payments that will result in additional late fees and possibly a default.
Arkansas Debt Management Plan
An Arkansas debt management plan is different than a debt consolidation because you’re not taking on new debt. Instead, you receive assistance from an Arkansas credit counseling agency to organize and execute a repayment plan on your existing debt, which can go beyond credit cards and include other obligations like student loans. The Arkansas credit counseling organization can work with your lenders to reduce interest rates and relax fees to get your monthly payment down to a reasonable amount that will work with your budget. They can also work with you to create and manage that budget to reach your financial goals moving forward.
Arkansas Bankruptcy
There are situations, however, where neither a debt consolidation nor a debt settlement plan is the right answer and you may instead want to consider bankruptcy counseling. Bankruptcy can offer relief when your debt obligations exceed your income and it is not possible to come up with an affordable payment plan. Bankruptcy can offer an opportunity to walk away from some, or possibly all, of your debts and get a fresh financial start. You can learn more about the various types of bankruptcy and about bankruptcy in Arkansas through Upsolve who can partner with you through the process of filing your own case at no cost.
