Steps to Take After Completing Credit Counseling

11 March 2025

So, you've just completed your credit counseling program—congratulations! That’s no small feat. It takes commitment, discipline, and a desire to turn your financial life around to make it through. But now that you're done, you might be wondering: "What’s next? What should I do to stay on track and ensure all that hard work doesn’t go to waste?"

Well, you’re in the right place, because this guide is all about helping you transition from credit counseling to managing your finances like a pro. Let’s break it down into actionable steps you can take right now to secure your financial future.

1. Review Your Credit Counseling Plan

First things first: Take a good, hard look at the plan you followed during credit counseling. Remember those monthly budgets, debt repayment strategies, and helpful financial tips your counselor shared with you? Do they still make sense for your current situation?

It’s a bit like following a recipe. If your plan helped you get out of financial trouble once, why not keep "cooking" with it? Analyze and tweak it where necessary to reflect any changes in your income, expenses, or financial goals.

Why is this important?

Without a solid plan in place, it’s easy to drift back into bad habits. Think of your budget as the compass that’ll keep you headed in the right direction.

2. Track Your Spending Religiously

Let’s get real—spending money is way too easy. Swiping a card here, clicking "Buy Now" there, or indulging in that overpriced latte can quickly add up. That’s why one of the best habits you can form post-credit counseling is tracking every single penny.

How do you do it?

Use budgeting apps like Mint, YNAB (You Need a Budget), or even a plain ol’ spreadsheet. The key is to categorize your expenses so you can see exactly where your money is going each month. Once you know your spending habits, you’ll find it easier to identify areas where you can trim the fat.

3. Prioritize Saving Over Spending

Here’s a hard truth: Emergencies will happen. Whether it’s a car repair, a medical bill, or an unexpected job loss, life has a way of throwing curveballs when you least expect it. That’s why building an emergency fund should be your top priority after credit counseling.

Start small, think big

If saving three to six months’ worth of expenses feels overwhelming, don’t sweat it. Begin with a baby step goal of $1,000. Once you hit that mark, gradually increase it. The point here is to build a financial cushion so you’re not relying on credit cards to bail you out in a pinch.

4. Avoid the Credit Trap—But Don’t Fear Credit

Here’s where it gets a little tricky. Credit counseling often leaves people with a bad taste for anything involving credit. But using credit responsibly is an essential part of improving your credit score and maintaining financial health.

What should you do?

- Don’t close old accounts: Keeping them open helps your credit utilization ratio, as long as you’re not overspending.
- Pay bills on time, every time: Missing payments is one of the fastest ways to hurt your score. Consider setting up autopay for peace of mind.
- Use credit sparingly: Treat it like a sharp knife—you don’t want to hurt yourself by being careless.

Responsible credit use signals to lenders that you can handle borrowing without going overboard.

5. Check Your Credit Report Regularly

Think of your credit report as your financial report card. After credit counseling, you’ll want to monitor your credit report to ensure all the hard work you did is reflected (and to catch any errors or suspicious activity).

How to check your credit report?

The federal government lets you request a free credit report once a year from each of the three major bureaus—Experian, Equifax, and TransUnion—via AnnualCreditReport.com. Make it a habit to review your report for inaccuracies like debts you already paid off or accounts you don’t recognize.

Pro tip: Stagger your requests throughout the year (one bureau every four months) for consistent monitoring.

6. Tackle Any Remaining Debt Assertively

If you’ve still got some debt lingering around, don’t let it linger for too long. Credit counseling may have helped you reduce or streamline your debt, but you’ll want to finish off the rest as quickly as you can.

Strategies to consider:

- The Snowball Method: Pay off your smallest debts first, then roll that payment into the next smallest debt. This gives you small "wins" that add up over time.
- The Avalanche Method: Focus on paying off the debts with the highest interest rates first. This might save you more money in the long term.

Pick whichever method works best for your personality and financial situation—it’s all about staying motivated and making progress.

7. Keep Learning About Personal Finance

If there’s one thing credit counseling probably taught you, it’s that knowledge is power. Don’t stop learning now! Think of personal finance as a lifelong journey rather than a one-and-done task. The more you educate yourself, the better prepared you’ll be to make smart money decisions.

Where can you learn?

- Books: Pick up personal finance classics like The Total Money Makeover by Dave Ramsey or Your Money or Your Life by Vicki Robin.
- Podcasts: Tune into shows like The Ramsey Show or How to Money.
- Blogs: Explore reputable finance blogs (like the one you’re reading right now!) for tips, guides, and insights.

By staying informed, you’ll feel more confident navigating the financial world.

8. Celebrate Your Wins (Yes, Seriously!)

Let’s be real: Managing money can feel like a slog sometimes. But it’s important to acknowledge your progress and celebrate your victories—no matter how small they may seem. Did you stick to your budget this month? Pay off a credit card? Hit a savings milestone? That’s worth celebrating!

How to celebrate responsibly

Treat yourself to something small but meaningful. Maybe it’s a dinner out, a new book, or a DIY spa day. The key is to reward yourself without sabotaging the progress you’ve made.

9. Build Healthy Financial Habits

You know what they say: Practice makes perfect. The habits you build now will shape your financial future. Focus on cultivating positive money behaviors like:
- Reviewing your budget weekly
- Paying yourself first (a fancy way of saying "save before you spend")
- Shopping mindfully (ask yourself, "Do I really need this?")

Over time, these habits will become second nature, and you’ll thank yourself later.

10. Don’t Be Afraid to Ask for Help Again

Lastly, don’t assume you’re on your own just because credit counseling is over. If you hit a rough patch or need guidance, don’t hesitate to reach out to a financial advisor or counselor. Think of them as your "financial personal trainers"—they’re there to help you stay on track.

Final Thoughts

Completing credit counseling is a huge accomplishment, but it’s just one chapter in your financial story. The steps you take now—whether it’s sticking to a budget, saving for a rainy day, or staying informed—will determine how successful you are in the long run. Remember, building healthy financial habits is a marathon, not a sprint. Take it one step at a time, and don’t forget to celebrate how far you’ve come.

So, what’s your next move? Start by picking one or two steps from this list, and start taking action today. Your future self will thank you for it.