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What Is Budget Counseling And How Does It Work?

Clever Girl Finance

If you’re really struggling financially and aren’t sure which problem to tackle or how, budget counseling can help. Table of contents What is budget counseling? Does budget counseling affect your credit score? Budget counseling can teach you how to budget and budgeting methods.

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How Consumer Credit Counseling Works

Clever Girl Finance

Your counselor might suggest how you can budget or reduce your expenses (maybe with a low-buy year) to pay off your debt as quickly as possible. If your current income is not enough to pay off your debt, a counselor might recommend another type of counseling, such as a Debt Management Plan (DMP). Department of Justice.