What is the purpose of credit counseling?

The purpose of credit counseling is to help individuals use credit responsibly and manage their debt effectively. This process typically involves providing guidance on budgeting, understanding credit reports, and developing strategies for paying off debt. Credit counselors work with individuals to assess their financial situation and create a plan that promotes healthier financial habits and better credit management over time.

This service plays a crucial role in assisting consumers who may be struggling with excessive debt or poor credit management. By educating clients about responsible credit use, credit counseling aims to empower them to make informed financial decisions that can lead to improved financial health and stability.

The other options focus on different aspects of credit and financial services. Providing insurance for credit accounts relates to financial protection, while processing credit card transactions and tracking transactions for merchants are operationally focused on transaction management rather than customer education and support.