Debt and Credit Counseling

Debt and credit counseling is essential for one to be able to take control of the money. This is the way to regain the power. One should not let other people make the financial decisions for himself. A person who is letting other people do this, will have his financial health in jeopardy.

Any debt and credit counseling should start with identifying one's money personality. When it comes to money, we all possess a personality all our own. Some of us are penny pinchers. What does this mean? It just means that if we pinch pennies, it means we are stingy and want to count every penny we can. Debt relief will not be a problem but would you like to be this type?

This might mean this type of money personality will not get deep in debt, but what kind of life is that? On top of this, being a penny pincher is contrary to getting wealthy. True, the penny pincher is not poor and more than likely has enough to survive the financial world.

Becoming a pincher does not happen overnight. It comes from having to do without while growing up so there is always fear the money will run out. The hoarding then becomes an option. The trouble with this scenario is that if one stops the money from going out, it also stops the money from coming in. The debt and credit counseling consultant will have to explain this to his client. Below is a graphic taken by emdot on December 1, 2004.


A spender throws caution to the wind and just spends without heeding the consequence. The spending is way out of control. Mostly, a spender learned to be one from watching his parents overspending. Then he learns later this is not the way to go as soon as the huge credit card interest sinks in.

It is easy to spot the spender. His house is full of things he does not need. If an assessment is made on the value of these possessions in terms of the joy and value it adds to his life, one will find it is not worth to have bought them in the first place. Now he realizes it is better to stop this insanity before going bankrupt. The adviser of the debt and credit counseling will not have a difficult time explaining this.

The above is a little better though than one whose money personality is that of a daredevil. What does the daredevil do? He spends for no reason at all. There is no rhyme or reason for his spending. It gives him a thrill to spend money

This person is generous. He literally will give the shirt off his back to anyone who will admire it and then goes and buys himself another one. He wants to be identified this way rather than by who he really is. Sooner or later he will get really hurt. Then perhaps he will act more financially responsible and sign up for debt and credit counseling.

Still worse than the aforementioned money personalities is the financial wreck. Surely, this type is a nightmare come true for anyone who provides debt and credit counseling. This person loves living on the edge. He is the type who will earn and lose a fortune, just like that.

Walking on the financial tightrope is a high for the financial wreck. He is often so reckless he does not have any regard for what the future will bring. Why? Because the safety of tomorrow does not concern him. He'd rather experience today's thrills than concern himself with what tomorrow will bring. Will this person benefit from debt and credit counseling? Let's see.

Then there is the one who is right on the money. His spending is on track. He values people first over money and things. He has respect for money and has a healthy relationship with it He balances his cheque book every month and pays his bills and taxes on time. Going from debt into wealth will be easy for this personality type.

So you see the money personality is the result of how one deals with money. The little things one decides to do can form the kind of financial life one will have. These little things become a habit and this in turn makes up the money personality. This type of money personality should benefit from advice on what to do with the money to make him wealthy but does not need much debt and credit counseling.

Some need counseling but it could be hard to get a company. To avoid trouble here are some suggestions:

  • Don't sign with those who solicit you on the phone, TV or emails.
  • Choose a company that is a member of the National Foundation of Credit Counseling (NFCC).
  • Be wary of those who promise to erase your debt.
  • Don't go by the word "non-profit" for this could be misleading
  • Don't submit your bank account number and credit card number over the phone.
  • To find an NFCC affiliate near where you live, visit
  • Stay away from those who charge more than $20 and reputable companies do not keep your payment for the first month.

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