A credit counselor evaluates a person's debt-to-income ratio. That means
they figure out what percentage of a person's income is left over after bills
are paid. They then help that person to budget or make adjustments to their
budget to relieve the stress of being unable to pay all their bills on time.
Clients come to credit counseling agencies on a voluntary basis. But often,
the desire to avoid a foreclosure or stop debt collection proceedings is the
motivating factor.
Court systems may recommend credit counseling in some cases. But there
is no record of a court ordering a person into credit counseling.
Credit counselors meet with individuals to learn facts about the debt they
owe, their income and their financial situation. Then the counselor works
out a budget or debt consolidation program to help the individual repay the
debt more comfortably.
Credit counselors also act in a supportive role. They help to relieve the
anxiety and stress of their clients. They also teach students and consumers
how to balance checkbooks, create and maintain budgets and manage money.
Credit counselors usually work in offices during the hours of 9 to 5. But
occasionally, they go out into the public to teach money management skills.
They can be self-employed. But few are. That's because working for an agency
gives counselors the opportunity to be certified and receive specialized training.
Other companies that employ credit counselors include banks, finance and
credit card companies. Employment for credit counselors in these other industries
is on the rise. Companies are beginning to take counseling into their own
offices.