Credit counselingOne of the main things that people have to do when they file for bankruptcy is to attain credit counseling. This is a service that the individual will have to pay for and attend in order to finalize their bankruptcy. When going through this kind of counseling, people learn to make better decisions about the kind of new debt they are creating as well as how to create and stick to a budget. This kind of counseling allows the individual to avoid getting into another circumstance in which they will have to go through bankruptcy again.

When asked what was the biggest benefit received by attending credit counseling, people have reported that they learned how to accurately make a decision about new debt. Before attending the counseling, there was a mindset of figuring out how to make the payments after acquiring the debt. After going through counseling, individuals have learned it is possible to take a closer look at the kind of debt they are acquiring, what the monthly payments will be, and how this will work with their budget.

It has yet to be seen whether the long term financial goals set by these individuals has been met, but given the tools to set and meet short term financial goals has helped many to enjoy great success. These courses are not teaching individuals how to manage their wealth, or how to invest their money. They simply provide the basic outline of how to create a budget, prioritize spending and manage the income that they have to work with. These factors alone seem to be helping individuals to take better control of their financial decisions and prevent falling behind on their financial obligations. By sticking with this program, more people will be able to keep making better choices and recidivism in bankruptcy courts will be greatly diminished.