Free credit counseling advise is available everywhere. You can find it online and you must remember that free credit counseling will not help you with elimination of your debt. It will only help you by giving advice and at most it can only create a channel for a smooth repayment of the debts that you have. Let us find out how credit counseling works!
If you think that you are burdened with too much of debt and if you are finding it difficult to repay the dues in time, you must consider going for credit counseling. Most of the counseling services that you come across are free of cost and you will get good advice that can help you with your endeavors to repay the creditors in a proper way.
The basic thing that happens in a credit counseling session is that you talk with one or more counselors who are financial experts. They will listen to your case and will ask for all the relevant documents and information about the loans that you have. They will also ask for your recent three bank statements.
If you are desperately looking for some serious help then, you must be honest and make sure that you furnish all the information that the counselors are looking for. The counselors will study the case on the basis of the information that you provide and carefully analyze all the documents that you give. They will also study the income structure and the income options that you have. They will then look into your spending pattern and look for any unnecessary expenses that you have.
If the counselors feel that a little modification in the budget that you have can help, they will help you in building up a new tight budget and make sure that all the unnecessary expenses are eliminated so that any money that is save can be diverted towards the repayment of the debts that you have.
If the counselors think that there is no other option left, they will ask you to either go for bankruptcy filing or debt settlement. They will also inform you the pros and cons of both the methods. It will then be your decision that will decide your financial fate!