HOW VALUABLE IS FINANCIAL COUNSELING?
More than you may think. The Credit Research Center, a Georgetown University think tank, recently completed the first ever study of the impact of one-on-one financial counseling. They concluded These results provide strong evidence that credit counseling that utilizes the NFCC agency methodology affects credit use and payment behavior in a positive way. Most counseled borrowers improved their risk scores relative to other borrowers with similar initial risk scores in the three-year evaluation period following their counseling. And, the large majority of counseled borrowers had significantly fewer accounts, lower debt, and fewer delinquencies relative to other borrowers, behavior that is consistent with the advice provided in credit counseling. Retention of good members is a high priority for every financial institution. Keeping the financially troubled consumer from filing bankruptcy through effective budget and debt education and counseling is one of BALANCE s top objectives.
