Credit Counselors

Career summary

#checked 3/10/15 lh

They look at a client's:

• Income
• Assets
• Expenses
• Credit report
• Debt

This helps them develop reasonable budgets and a payment plan that customers can easily follow.

Credit counselors usually work with people who have too much debt compared to their income. They often work with people who may need to declare bankruptcy or may even lose their home.

To help these clients, credit counselors often negotiate with banks and credit card companies to reduce payments or interest rates. They may also set up special loans to help clients pay back what they owe.

To do this work, counselors work one-on-one to review financial information in detail. Much of their job involves teaching clients about housing programs, credit cards, financial information, and budgeting techniques.

Credit counselors sometimes handle payments themselves. They keep written records of payment plans, budgets, and reports.

Related careers

This career is part of the Human Services cluster of careers.

Related careers include:

• Budget Analysts
• Credit Analysts
• Credit Checkers and Authorizers
• Financial Analysts
• Financial Counselors
• Loan Officers
• Social Workers
• Tax Examiners

Job duties

Task list

The following list of tasks is specific to credit counselors.

• Review clients' income, assets, debts, and expenses.
• Calculate income available to pay down debt.
• Create budgets, spending plans, and debt management plans.
• Recommend ways for clients to meet their financial goals.
• Help clients avoid bankruptcy or foreclosures.
• Explain general financial topics to clients, including credit reports and consumer finance-related laws.
• Advise clients on buying or renting a home.
• Write reports and recommendations.
• Pay creditors on behalf of clients.
• Maintain and update client financial records.
• Refer client to social service or community resources if necessary.
• Negotiate with creditors on behalf of clients.
• May teach courses or seminars on financial topics.

Common work activities

Credit counselors perform the following tasks. These tasks are common to many careers.

• Get information needed to do the job
• Use computers
• Document and record information
• Establish and maintain relationships
• Update and use job-related knowledge
• Communicate with supervisors, peers, or subordinates
• Communicate with people outside the organization
• Perform for or work with the public
• Make decisions and solve problems
• Perform administrative tasks
• Process information
• Identify objects, actions, and events
• Provide advice and consultation to others
• Analyze data or information
• Organize, plan, and prioritize work
• Evaluate information against standards
• Explain the meaning of information to others
• Assist and care for others
• Resolve conflicts and negotiate with others
• Teach others
• Coach others
• Develop goals and strategies
• Think creatively

Work requirements

Working conditions

In a typical work setting, credit counselors:

Interpersonal relationships

• Have a very high level of social interaction. They interact with customers throughout their day.
• Sometimes deal with customers who may be upset about their finances.
• Communicate every day by phone, e-mail, and in-person discussions.
• May work as part of a team.

Physical work conditions

• Always work indoors.

Work performance

• Must be accurate when looking at a customer's finances.
• Repeat the same mental tasks most days they work.
• Must meet strict weekly deadlines.
• Often make decisions that affect customers. They sometimes consult supervisors before making a decision but often act independently.
• Set most of their daily tasks and goals without talking to a supervisor first.

Hours/travel

• Usually work a standard 40-hour week.

Physical demands

Credit counselors frequently:

• Sit for long periods of time.

It is important for credit counselors to be able to:

• See details of objects that are less than a few feet away.
• Understand the speech of another person.
• Speak clearly so listeners can understand.

It is not as important, but still necessary, for credit counselors to be able to:

• Use fingers to grasp, move, or assemble very small objects.
• See details of objects that are more than a few feet away.
• Hear sounds and recognize the difference between them.

Skills and abilities

Credit counselors need to:

Communicate

• Understand spoken information.
• Understand written information.
• Speak clearly so listeners can understand.
• Write clearly so other people can understand.
• Listen to others and ask questions.
• Read and understand work-related materials.

Reason and problem solve

• Notice when something is wrong or is likely to go wrong.
• Analyze ideas and use logic to determine their strengths and weaknesses.
• Use reasoning to discover answers to problems.
• Understand new information or materials by studying and working with them.
• Combine several pieces of information and draw conclusions.
• Recognize the nature of a problem.
• Judge the costs and benefits of a possible action.
• Think of new ideas about a topic.
• Identify what must be changed to reach goals.
• Follow guidelines to arrange objects or actions in a certain order.
• Concentrate and not be distracted while performing a task.

Use math and science

• Add, subtract, multiply, and divide quickly and correctly.
• Use math skills to solve problems.
• Choose a mathematical method or formula to solve problems.

Manage oneself, people, time, and things

• Check how well one is learning or doing something.
• Manage the time of self and others.

Work with people

• Look for ways to help people.
• Persuade others to approach things differently.
• Solve problems by bringing others together to discuss differences.
• Be aware of others' reactions and understand the possible causes.
• Change behavior in relation to others' actions.
• Teach others how to do something.
• Use several methods to learn or teach new things.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Finance

Other programs of study to consider

• Family Resource Management

Training

To work as a credit counselor, you typically need to:

• have a high school diploma or equivalent
• have a bachelor's degree; and
• complete moderate-term, on-the-job training.

Education after high school

Most credit counselors have a bachelor's degree. Common areas of study are family and consumer sciences, family resource management, and consumer economics.

Work experience

Volunteering at a non-profit credit counseling office provides good experience.

On-the-job training

Employers provide new counselors with training in customer relations, and other areas. Training generally lasts between two and six months.

Helpful high school courses

In high school, take classes that prepare you for college. A college preparatory curriculum  may be different from your state's graduation requirements .

You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.

Helpful electives to take in high school that prepare you for this career include:

• Banking and Finance
• Computer Applications
• Consumer Law
• Economics
• Family and Consumer Sciences
• Personal Finance

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups  that may be available in your high school or community.

Things to know

Employers prefer credit counselors with strong communication skills. Some may prefer counselors with a bachelor's degree in business or economics. Employers may seek out credit counselors with specific certifications.

Licensing/certification

Many states require credit counselors to have a license. Requirements vary by state.

Wages

Wages vary by the counselor's level of experience and formal training. In general, earnings increase with higher levels of experience and training. Those who work for the federal government may be on a fixed pay scale. They advance based on their experience and additional training. 

Some employers provide benefits for full-time credit counselors. Typical benefits include health insurance, sick leave, paid vacation, and a retirement plan. 

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

Major employers:

• Banks and credit unions
• Personal credit companies
• State and local government agencies

National outlook

This occupation will see strong growth, however, it is a small occupation and not many new jobs will be created. Demand will grow as more people take on and manage debt. Demand will also increase as many young people try to manage large amounts of student debt.

Other resources

Association of Credit Counseling Professionals 

Credit Counselor Certifications 
from the National Association of Certified Credit Counselors (NACCC)

National Association of Certified Credit Counselors 
322 5th Avenue
Indialantic, FL 32903
321.725.3497

References

Career cluster

• Human Services

Career path

• Conventional (Business Operations)

O*Net  occupation

• Credit Counselors (13-2071.00) 

O*Net job zone 

• Job Zone 4 - Considerable preparation needed. A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations.

DOT occupation

• Credit Counselor (160.207-010) 

Holland occupational clusters

• Conventional/Enterprising/Social
• Conventional/Social/Enterprising

COPSystem

• Business Professional