Which statement best describes typical activities of credit counseling services?

• A. Contact creditors to work out payment plans at reduced costs
• B. Collect information on income and unpaid bills
• C. Patients make one monthly payment to the service.
• D. None of the above

Answer: (B)

Credit counseling services begin by getting a clear picture of a client’s finances. They collect information on income, monthly expenses, debts, and unpaid bills to understand cash flow and determine what can realistically be repaid. This step is essential because it drives the budgeting advice and any repayment plan that might be set up. While some counselors may later contact creditors to arrange or negotiate terms as part of a debt management plan, gathering financial data is the fundamental, typical activity that guides the entire process. The idea of a single monthly payment going to the counseling service isn’t a standard part of how these services operate, as payments usually flow toward creditors or as program fees, depending on the arrangement.