5 Signs You Need Professional Credit Counseling Services

5 Signs You Need Professional Credit Counseling Services

Most of us avoid talking about our finances and debt. However, reading books, trying DIY debt repayment plans, or searching for easy solutions only goes so far. With so many ins and outs of personal finances, working with a credit counselor is essential to helping you get your debt under control.

If you are struggling to manage your finances, consumer credit counseling can prevent deeper financial trouble. American Financial Solutions has compiled a list of signs you may benefit from professional credit counseling services.

What is Professional Credit Counseling?

Credit counseling organizations, such as American Financial Solutions, are nonprofit organizations that can advise you on your money and debts. Additionally, they help you budget, develop debt management plans (DMPs), and offer resources and workshops to help with money management.

Certified credit counselors are trained in consumer credit, budgeting, and money and debt management. Counselors review your income, expenses, and debt to develop a personalized budget and spending plan based on your financial picture.

How It Differs from DIY Budgeting

Budgeting involves creating a written plan for how you will use your monthly income. It includes identifying your priorities and financial goals, outlining your estimated income and expenses, tracking your actual spending and income, and adjusting as your needs change.

While credit counseling includes budgeting, it also takes a holistic look at your situation. Credit counselors consider your existing debt and loans and can negotiate with your creditors on your behalf to reduce late fees or interest rates. Therefore, working with a credit counselor may save you money in the long term. Credit counselors can also help you explore options such as DMPs, debt consolidation, or the impact of debt settlements.

Top 5 Signs You Need Credit Counseling

Not every person in credit card debt benefits from credit counseling services. However, there are obvious warning signs you need to look out for. If you notice any of the following, credit counseling may help prevent further hardships.

Struggling to Make Minimum Payments

Every loan you take out comes with a required minimum monthly payment. If you’re struggling to keep up with those payments, it could be a sign that your debt-to-income ratio is too high.

Paying only the minimum—especially on high-interest credit cards—can keep you in debt much longer and cost you far more in interest than you originally borrowed. Credit counseling can help you create a plan to manage payments, reduce interest, and make real progress toward becoming debt-free.

Hiding Bills or Ignoring Statements

Finances are a source of stress for most people. However, if you stress about opening bills or ignore them altogether, hoping they’ll go away, you may be in over your head. Repeatedly missing payments impacts your credit score and credit report, which can affect your ability to buy a house or car. In these situations, it’s best to turn to credit counseling for help.

Constantly Transferring Balances       

If you’re regularly transferring balances from one bank account to another or from one credit card company to another, you’re unable to make consistent payments. Shopping for reduced interest rates is a sign that you may need to seek advice from a professional credit counselor.

Receiving Frequent Creditor Calls

If you’re receiving frequent calls from creditors, a credit counselor can help. Too many past due notifications may signal that you’re in financial trouble and can result in higher interest rates, late fees, and other charges. All of these add up, which can put you in more debt. Luckily, reputable credit counseling agencies can help you develop an action plan to help you regain control and become debt-free. 

No Emergency Savings at All

Emergencies happen, and having extra money in savings is essential to help cover the cost of unexpected expenses. If you don’t have any cash reserved for such unplanned expenses, you’ll revert to relying on credit cards for expensive repairs, maintenance, or bills. Credit counseling can help you establish an emergency savings fund.

Key Benefits of Credit Counseling

Regardless of your current financial situation, credit counseling offers several benefits, including the following:

• Customized financial planning: Certified credit counselors analyze your situation holistically and recommend solutions like debt management plans to reduce your debt. Additionally, they offer one-on-one support with budgeting.
• Structured repayment roadmap: Debt management programs provide a fixed monthly payment and term, so you know exactly how much you’ll spend and how long it’ll take to repay your debts.
• Reduced interest rates: When you partner with a credit counselor, they will negotiate directly with your lenders. These negotiations may result in lower interest rates, no late fees, and one monthly payment to your credit counseling agency.
• Reduced stress and anxiety: Debt counseling can also provide emotional relief for you and your family. Working with a professional creates a clear path forward, reducing the stress associated with debt.

Choosing the Right Provider

When searching for a credit counseling organization, you must find a reputable agency. You want to look for a nonprofit organization that offers multiple services and free credit counseling. Avoid for-profit companies that charge high fees upfront or make unrealistic promises.

 If you’re unsure where to start looking for accredited debt relief, there are well-known resources that can help. These resources include National Foundation for Credit Counseling (NFCC) and Financial Counseling Association of America (FCAA). Both organizations can connect you with certified counselors. You also want to utilize U.S. Department of Justice’s website to find a list of approved credit counseling associations in your state.

Before your consultation, you should ask the agency for free information about its services to see if its knowledge and expertise align with your needs. A reputable organization is willing to send you free information before you provide them with details about your situation.

You should also ask the following questions during your free consultation to ensure you find the best credit counseling organization for you:

• What services do you offer? Look for an organization that provides a range of services. Avoid ones that push a DMP as your only option.
• How is credit counseling offered? You want to partner with a company that fits your lifestyle. Does the organization offer in-person, phone, and online counseling?
• What are your fees? Does the organization charge monthly or setup fees? If so, how will the fees affect your final payment amount?
• What if I can’t afford your fees? Reputable organizations will work with you on payment plans. 
• How are your employees paid? Are employees paid on a “commission?” For example, do they make more if you sign up for certain services?

Choose American Financial Solutions to Navigate Your Debt

American Financial Solutions is a nonprofit credit counseling, financial education, and debt consolidation agency founded in 1999. We provide credit and financial counseling in all 50 states and the District of Columbia.

If you’re struggling with credit card debt and other financial challenges, we may be able to help. Our certified counselors are financial experts who are enthusiastic about empowering you to reclaim control over your situation and improve your financial future. 

We offer a range of services for those who are seeking financial wellness and stability, including:

• Debt Management Plans
• Credit counseling
• Debt management resources and financial education
• Budgeting tools and financial calculators
• Homeownership, foreclosure, and bankruptcy counseling
• Student loan counseling

Schedule a free credit counseling session today to explore options that can help you manage your debt.

Published Jun 23, 2025.