Being able to budget, improve your credit score and get out of debt does not come naturally to anyone. These are skills that everyone needs help learning and many people need support with! Financial hardship is the main stressor for a lot of us, making it important to learn valuable financial skills. We’re here to help you get started on the path to financial literacy with financial counseling.

What is financial literacy?

You learn a lot of things in school – about math, history, great plays from hundreds of years ago – but likely not enough about how to manage money. Financial literacy is having the ability to confidently manage money. You can think about it just like learning to read. Everyone needs help with basic skills, but once you get the hang of it, you can start picking up some skills on your own.

One of the best ways to learn about these valuable financial skills is through financial counseling.

What’s the difference between a financial advisor and a financial counselor?

A financial advisor and counselor sound similar, so it’s common for people to think there’s no difference. However, advising and counseling are very different when it comes to finances.

Financial advisors provide investment management, estate planning and retirement advice, often for a fee based on assets managed. They are best to work with when you have a major life change, like getting an inheritance, or when your income is growing. These financial planning services are not a great choice if you need budget help or are in debt.

Financial counselors offer personal finance advice focused on budgeting, debt management and basic financial planning. Working with a financial counselor is one of the best options when you’re experiencing financial hardship. You can think of them as your financial “coach” helping you get financially fit.

Certified financial counselors often charge a fixed fee or an hourly rate, but here at Democracy Federal Credit Union, we don’t believe you should spend money to save money. We offer free financial counseling so you can get the help you need without more debt.

What can a financial counselor help with?

A financial counselor can teach you how to create a budget. This is the foundation of a smart savings plan and something that a financial counselor can help you with. Learning about money management and how to create a budget is key to growing your savings and improving your credit score.

Budgets vary depending on income, debt and lifestyle and change suddenly when there are emergency expenses. Here’s a basic 50/30/20 monthly budget template:

  • Necessities: 50%
  • Wants: 30%
  • Savings and debt payments: 20%

However, we get that for some people a budget like this just isn’t possible. Personalized financial solutions are important – especially if you’re dealing with job loss or are uncertain about your financial future. That’s when a financial counselor can help!

Our budget counseling services offer personalized solutions to your current financial concerns; we can:

  • Advise you on managing your money and creating a budget.
  • Help you deal with troubled credit, such as past-due accounts, payday loans and more.
  • Provide credit restoration techniques and teach you how to improve your credit score.

Enrolling in budget and credit counseling services will help you become confident in managing your finances by covering all the basics. We’ll assist you in determining what’s best for your financial goals while also making sure you understand valuable financial skills.

A financial counselor can guide you through a debt management program. It’s all too easy to fall into debt, especially if you have multiple credit cards or variable high-rate loans. Each credit union may have slightly different approaches when it comes to managing debt, but at Democracy FCU, we focus on your personal financial situation.

Upon enrolling in a debt management plan, we will:

  • Help you simplify the management of your debt and combine most or all unsecured debt into one monthly payment.
  • Create a proposal to your creditors to negotiate debt reductions, lower interest rates, eliminate fees and work out payment agreements.
  • Send payments to involved creditors so you can make one simple payment to Democracy FCU.

The majority of Americans are in debt, with many people struggling with overwhelming debt. It can seem impossible to overcome, but we’re here to help make it possible. A debt management program is the first step toward a debt-free future.

A financial counselor helps you reach your goals. Ultimately, a financial counselor works with you to create a plan so you can achieve your financial goals. One of the first steps when requesting an appointment with our financial counselor is to fill out our financial counseling intake form and select your goals:

  • Budgeting
  • Credit Review/Repair
  • Debt Management/Restructuring
  • Seeking Loan from Democracy FCU
  • Pre-Purchase (Home Purchase/Preparation)

If you’re not sure if your goals line up with these options, you can also fill in what you want support with, and we can guide you to the right resources. You can request an appointment with Democracy’s financial counselor here.

Start simply by watching educational videos from a financial counselor.

If you’re not ready to meet with a financial counselor or you’re hoping to learn something before your appointment, you can start with our Financial Fitness Video Series hosted by our financial counselor. Get started by learning about:

  • Financial Goal Planning
  • Micros vs. Macros (Know Your Numbers)
  • Lean Finances
  • Credit Checkup
  • Financial Junk Food (Debt)

Interested in more topics? You can also learn about savings hacks, deferment, how to prioritize expenses during a financial crisis and more with our financial education videos here. These videos can also be a great resource if you need a refresher, even if you’ve already met with a financial counselor.

If you’re ready to take the first step to improving your credit score, finding debt relief and more, we’re ready to help you. Start here by watching our Financial Video Series or make an appointment with our helpful financial counselor. You can also stop by a branch any time to learn more about our programs. Democracy FCU is here to help you succeed!