Credit Counseling for a Colorado Divorce
	Lesson Summary. Credit counseling can provide guidance on how to budget your income and expenses. However, for most people it will not help. Most credit counselors are bill collectors in disguise. Or selling financial products on commission. Be careful.

Divorce and separation is a financial disaster for most Colorado couples. Where the income of the parties is not sufficient to support two separate households, additional day care expenses, and the payment of existing marital debt, some basic financial planning is necessary.

One of the options is to seek credit counseling. (See Chapter 15 regarding debt.)

Credit counseling can help you:

1. Budget your income and expenses;

2. Explore ways to increase your income;

3. Consolidate bills with new (fewer) loans to reduce the number of payments and interest paid; and

4. In years past, they could sometimes negotiate lower interest rates on unsecured debt;

However, today the role of credit counseling agencies has changed. Beware:

1. Most credit counseling agencies are collection agencies which work for credit card companies - they are paid by credit card companies - even though some charge you;

2. They generally only work with credit cards, not other debt;

3. Many are scams who charge significant “application” fees and monthly fees;

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