Credit Counseling Definition

Credit counseling, also known as debt counseling, is a process of educating consumers to avoid debts that cannot be repaid. Credit counseling frequently involves a counseling agency intervening with creditors on the debtor’s behalf to establish a debt management plan. Credit counseling seeks to modify the long-term behavior of an individual through education and structured spending and budgeting. Operating on the assumption that education and knowledge enable financial responsibility, credit counseling has been quite successful at achieving its goals.