With prices soaring across the country, more families are turning to nonprofit credit counseling for real help managing debt. While some rely on artificial‑intelligence tools, organizations say personal guidance can make a decisive difference.
Entrepreneur finds relief through counseling
Maria Gonima, chief executive of Los Angeles‑based public‑relations firm Big Smile Co., said she accumulated roughly $60,000 in debt while trying to keep her staff paid during the COVID‑19 pandemic. “I found myself in an insurmountable amount of debt,” Gonima told the outlet. “To me, $60,000 debt is a whole lot.”
Before the pandemic, Gonima’s firm employed 15 people and was thriving on entertainment and technology projects. When the virus struck, she chose to continue paying her employees despite the uncertainty, saying, “As a business owner, as a human, I wanted to make sure that everybody was paid because it was such an impossible time.”
Eventually, Gonima reached out to Money Management International, a nonprofit credit counseling organization. Counselors reviewed her finances, contacted creditors, and negotiated lower interest rates on her credit cards. “The debts were minimized to a crazy level, and so I’m now actually able to get rid of my debt in the next year, and I’m so excited about it,” she said.
Nonprofits see growing demand
Money Management International’s spokesperson, Magda Zuniga, noted a noticeable uptick in people seeking assistance since the pandemic, especially among millennials. “The situation now with millennials, they are getting in a lot of debt, especially with this new system like buy now, pay later,” Zuniga explained.
Zuniga emphasized that the first step toward financial recovery is acknowledging the problem and reaching out for help. “The first thing is that you are not in denial and seek for help and give us a call,” she advised.
Other counselors echoed the message, urging anyone feeling financial pressure not to wait until debt feels unmanageable before contacting a nonprofit counselor.
Why nonprofit counseling matters
Nonprofit credit counseling organizations operate without profit motives, focusing on education, budgeting tools, and negotiated settlements that can lower monthly payments. Their services are typically free or low‑cost, making them accessible to families facing economic strain.
For families like Gonima’s, the combination of personalized budgeting advice and creditor negotiations can turn a seemingly hopeless situation into a manageable path toward debt freedom.
As the cost of living continues to rise, experts suggest that more households will likely explore nonprofit counseling options to regain financial stability.
Original reporting: San Antonio, TX News (HLL/CB) — read the source article.
