Credit Counselor how-to
How to Explain a Debt Management Plan
Clients need to understand the trade-offs.
Quick answer
Clients need to understand the trade-offs. In short: explain; show; explain, then complete the remaining steps below.
Step by step
Explain how it works.
Show the monthly payment.
Explain lower rates.
Explain closed accounts.
Discuss timelines.
Answer questions.
Safety reminders for credit counselors
- Protect client financial data
- Follow consumer protection laws
- Avoid conflicts of interest
- Refer clients in crisis to help
Key terms
Debt management plan · Budget · Credit score · Credit report · Debt-to-income ratio · Collections: see the full credit counselor glossary.