How to Get Free Credit Counseling in Michigan
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Getting free credit counseling in Michigan is easy; all you have to do is follow these simple steps.
Written by the Upsolve Team.
Updated December 4, 2019
If you’re in financial trouble, then you are certainly not alone. Thousands of Americans face money and debt problems each year. Some people don’t accurately calculate their expenses, income, and debts, while others experience unexpected and sudden changes in their financial circumstances. If you are one of them, Michigan credit counseling can help!
What is Credit Counseling?
A reputable Michigan credit counselor will teach and guide you on how to manage your existing debt and avoid taking on more. Credit counseling in Michigan is a counseling session that provides assistance and financial education to people who have financial problems or people who can’t repay their debt. If you have been paying only the minimum amount on your credit cards or even missing a couple of payments, meeting with an experienced Michigan credit counselor can finally help you shake off most of your financial troubles.
Despite what many people believe, credit counseling in Michigan doesn’t have to impact your credit report. Note that if you go to a Michigan credit counselor in order to get debt advice or help to get financially organized to manage your money, this process won’t show up on the credit report.
Free or nonprofit Michigan credit counseling agencies can:
help you prepare a budget
help you avoid bankruptcy
help you handle student loans
advise you on money management and debt management
Michigan credit counselors usually negotiate with your creditors to help you “manage” your debt. Typically, this involves reducing your monthly repayments by stretching out the period of time you have to pay. Michigan credit counselors usually work out up-front deals where your creditors agree to stop collection efforts and even waive late fees. Keep in mind that you can benefit from credit counseling in Michigan, even if you are not behind on your debts.
Credit counseling in Michigan is a good option for you if you have a lot of student loans. It is also a great option if you do not want to deal with debt collectors. A debt management plan, on the other hand, rolls all of your debts into a single monthly payment, which makes it easier for you to manage things. You Michigan credit counselor may suggest a debt management plan if it is right for you.
Michigan credit counselors will guide you on several matters, such as consumer credit, student loans, budgeting, and debt and money management.
Here are some of the benefits of credit counseling in Michigan.
Lower interest rates
The ability to repay multiple debts in a single monthly payment.
Elimination of finance charges.
How to Get Free Credit Counseling in Michigan
Getting free credit counseling in Michigan is easy; all you have to do is follow these simple steps.
Find Michigan Nonprofit Credit Counseling Agencies
To find a reputable Michigan credit counselor, you should check out the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Organization of America. Each of these organizations maintains a directory of their member organizations, and most of them are nonprofits, serving a variety of consumer needs. Good credit counseling in Michigan is available at no cost through a nonprofit agency. You shouldn’t have to add to your debt just to get help! Nonprofit counseling organizations in Michigan train counselors and accredit them. However, never sign up with a Michigan credit counseling organization that claims their services are a consumer bankruptcy alternative without knowing your situation. The Federal Trade Commission (FTC) states that most reputable and upright Michigan credit counselors work for nonprofit firms. However, it also warns that "nonprofit" status does not guarantee that their counseling services are "free, economical, or even legitimate."
Information to Research Before Talking to a Michigan Credit Counseling Agency
There are many scams out there that promise “debt relief,” which may include Michigan credit counseling, credit repair, and debt settlement, etc. As a rule, when an agency promises you something that is too good to be true (like “pay us $500, and we’ll completely clean up your credit!”) it’s probably a scam. So, you will be better off avoiding debt settlement and credit repair agencies. A quick and easy way to ensure that you do not get involved with these agencies is to only do business with a Michigan credit counseling agency that is accredited by the National Foundation for Credit Counseling (NFCC). And then run the name of the credit counseling agency through the Better Business Bureau (BBB) in order to ensure that they have a high rating.
Questions to Ask the Michigan Credit Counselor Before Signing Up
The Consumer Financial Protection Bureau recommends that you ask prospective Michigan credit counselors these questions:
How are credit counseling services offered?
What other services do you offer?
What are your fees?
Do you provide free educational materials and workshops?
Will I have a written agreement with you?
How is your staff paid?
Are you licensed to provide your services in Michigan? Many states in the US require that an agency register or get a license before providing credit counseling and similar services. Never hire a counseling organization in Michigan that hasn’t fulfilled all the requirements for the state. Credit counseling agencies in Michigan have an obligation to get registered.
And as always, make sure that you get everything in writing and also read the fine print before you sign up for any service. You should also avoid Michigan credit counseling agencies that force you into a debt management plan before truly understanding your financial situation.
What to Expect During Credit Counseling
Your initial meeting with a Michigan credit counselor, whether on the phone or in person, should last about 60 minutes. You should prepare for this meeting by gathering complete and accurate information about your finances, such as information about all your property, income and expenses, and basic demographic information.
The Michigan credit counselor will usually provide a written report after the meeting, with all the details of your specific situation as well as recommendations. Note that this report will not be full of surprises. The report will review what you discussed, as well as the next steps, which you may have discussed as well. The first counseling session is usually free.
What Happens After Credit Counseling in Michigan
A certified credit counselor in Michigan often takes several approaches to reduce debt. Some of the recommendations you may receive are:
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Michigan Debt Consolidation
Debt consolidation loans provide you with a quick fix solution and short-term relief by replacing several debts with one new loan. With the assistance of a Michigan credit counselor, you can easily simplify your situation.
Michigan Debt Management Plan
Debt management plans in Michigan are touted as a great alternative to consumer bankruptcy and an affordable and convenient way to repay the credit card and other debt. You will make payments to your Michigan counseling organization, which then pays the money to your creditors.
Michigan Bankruptcy
A reliable and honest Michigan credit counselor will tell you in case your financial situation is so bad that it’s in your best interest to file for consumer bankruptcy. While filing bankruptcy may have a negative effect on your credit score, it’s one way to get rid of a load of unsecured debts.
