Credit counseling

Credit counseling (known in the United Kingdom as debt counseling) is a process used to help individual debtors overcome their debt through financial education, budgeting, debt management plans (DMPs) – known in the United Kingdom as the individual voluntary arrangement (IVA) – and a variety of other tools with the goal of reducing and ultimately eliminating debt.

Credit counseling is often provided by credit counseling agencies (CCAs). These agencies work with consumers to help them understand their financial situations and explore the best ways to repay their debts.

Regulations on credit counseling and credit counseling agencies vary by country and sometimes within regions of the countries themselves. In the United States, individuals filing bankruptcy are required to receive credit counseling.

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