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Helping good people through bad times

How does credit counseling help Tennessee debt problems?

In these times of economic downturn, having unpaid debts is quite common in Tennessee. There are many families in Tennessee who are desperately trying to pay off their existing debts and start saving for a financially secure future. However, many fail to do so because of a lack of proper guidance regarding their financial planning.

If you would like to get rid of your insurmountable debts, you should consider getting help from credit counselors who are usually certified in debt management and consumer credit. Credit counselors can help you to draw up a budget for each month, depending on your income and expenditures, and then help you formulate a debt management plan.

A debt management plan usually requires you to make a payment to a credit counseling organization every month. The counselors then use this money and make payments to your creditors, according to the plan. Many credit counseling organizations do not work for profit. Nonetheless, the counselors may charge a fee for their services. The fee is deducted from the money you pay them for repaying your debts.

Credit counselors do not negotiate with your creditors to reduce the amount that you owe, but they can negotiate with your creditors to get you an extension period or to lower the interest rates and fees. This can provide a huge relief and can lower the repayment amount substantially.

Credit counselors can be helpful in drawing up a repayment plan, which is realistic and you will be able to follow. They also hold classes and distribute reading materials on debt management. These materials are mostly accessible online for free.

Source:, "What is credit counseling?," June 18, 2014

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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