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Summary

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Video transcript available at https://www.youtube.com/watch?v=9PE7ql_G7os.
Quick Facts: Credit Counselors
2023 Median Pay $48,570 per year
$23.35 per hour
Typical Entry-Level Education Bachelor's degree
Work Experience in a Related Occupation None
On-the-job Training Moderate-term on-the-job training
Number of Jobs, 2023 31,800
Job Outlook, 2023-33 5% (As fast as average)
Employment Change, 2023-33 1,500

What Credit Counselors Do

Credit counselors advise and educate individuals or organizations on acquiring and managing debt. They also may provide guidance on credit issues and on budgeting, mortgages, or student financial aid packages.

Work Environment

Most credit counselors work full time. They usually work standard business hours but may need to work in the evenings or on weekends to meet with clients.

How to Become a Credit Counselor

Credit counselors typically need a bachelor’s degree to enter the occupation. Candidates with a high school diploma may qualify for some jobs. Once hired, workers typically need several months of on-the-job training to attain competency.

Pay

The median annual wage for credit counselors was $48,570 in May 2023.

Job Outlook

Employment of credit counselors is projected to grow 5 percent from 2023 to 2033, about as fast as the average for all occupations.

About 2,300 openings for credit counselors are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for credit counselors.

Similar Occupations

Compare the job duties, education, job growth, and pay of credit counselors with similar occupations.

More Information, Including Links to O*NET

Learn more about credit counselors by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Credit Counselors Do About this section

Woman and man sitting at a table in the office and man signing the contract.
Credit counselors help clients understand their financial obligations.

Credit counselors advise and educate individuals or organizations on acquiring and managing debt. They may also provide guidance on credit issues and on budgeting, mortgages, or student financial aid packages.

Duties

Credit counselors typically do the following:

  • Interview clients by telephone or in person to gather financial information
  • Explain services or policies, such as about managing debt, to clients
  • Help clients understand obligations associated with financial aid options for postsecondary education
  • Advise clients in planning for student loan repayment
  • Assess clients' overall finances, including income, assets, debt, and expenses
  • Calculate clients' available income to create debt management plans, set budgets, and prioritize debt obligations and repayment
  • Prepare written documents to establish contracts with or communicate financial recommendations to clients

Credit counselors guide clients in understanding, assuming, and repaying debt associated with credit, loans, and similar financial contracts. These workers may explain various options and educate clients on the short- and long-term costs of borrowing money. Credit counselors also inform clients of the consequences of defaulting on debt, such as bankruptcy or home foreclosure.

Credit counselors advise clients on meeting their financial obligations. For example, prioritizing repayment may include reviewing how changes to personal or financial circumstances affect spending or budgeting. Counselors may negotiate with creditors on behalf of clients to arrange for payment adjustments, such as through interest rate reductions or time extensions. They also may refer clients to social service or community resources for help with food, medical, and other basic needs.

Some credit counselors specialize in a particular area of guidance. For example, housing counselors advise clients on rental agreements, homeownership, foreclosure prevention, and other housing matters. Student financial aid counselors help students apply for, select, and accept loans, grants, scholarships, and other awards to pay for college.

Work Environment About this section

Busy man checking documents working at laptop in office.
Credit counselors typically work in an office setting.

Credit counselors held about 31,800 jobs in 2023. The largest employers of credit counselors were as follows:

Colleges, universities, and professional schools; private 22%
Colleges, universities, and professional schools; state 15
Credit intermediation and related activities (5221,3) 7
General medical and surgical hospitals; private 6
Junior colleges; local 6

Credit counselors typically work in an office setting. Their work may be stressful at times, such as when managing several accounts at once or keeping track of deadlines.

Work Schedules

Most credit counselors work full time. They usually work standard business hours but may need to work in the evenings or on weekends to meet with clients.

How to Become a Credit Counselor About this section

Woman standing gives training to four seated newly hired staff.
Newly hired credit counselors receive training on how to build a rapport with clients.

Credit counselors typically need a bachelor’s degree to enter the occupation. Candidates with a high school diploma may qualify for some jobs. Once hired, workers typically need several months of on-the-job training to attain competency.

Education and Training

Credit counselors typically need a bachelor’s degree, usually in a field such as business, finance, or psychology. Candidates with a high school diploma may qualify for some positions, even if employers prefer to hire those who have a degree.

Prospective credit counselors may begin preparing in high school by taking classes in subjects such as English, mathematics, and personal finance.

After they are hired, credit counselors typically need several months of on-the-job training to attain competency. During this training, new counselors work with more experienced counselors to learn how to build a rapport with clients and how to perform other duties.

Licenses, Certification, and Registrations

Employers may prefer or require certification for credit counselors. Some certification is general, such as that offered by the National Association of Certified Credit Counselors. Others are specific to an area of expertise, such as the U.S. Department of Housing and Urban Development’s Housing Counselor Certification.

Important Qualities

Analytical skills. Credit counselors must be able to assess income, expenses, and other financial information specific to each client.

Attention to detail. Credit counselors often need to manage several client accounts at the same time and must be organized to ensure accuracy.

Communication skills. Credit counselors must explain complex financial concepts in a way that clients understand. They also may mediate negotiations between clients and debt collectors.

Decision-making skills. Credit counselors must determine the best approach for their clients to reduce debt and increase credit opportunities.

Interpersonal skills. Counselors must establish a rapport with clients and respond thoughtfully to their questions and concerns.

Problem-solving skills. Credit counselors must be able to help clients create a customized debt management plan.

Pay About this section

Credit Counselors

Median annual wages, May 2023

Financial specialists

$80,090

Credit counselors

$48,570

Total, all occupations

$48,060

 

The median annual wage for credit counselors was $48,570 in May 2023. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $37,460, and the highest 10 percent earned more than $75,030.

In May 2023, the median annual wages for credit counselors in the top industries in which they worked were as follows:

Junior colleges; local $57,530
Credit intermediation and related activities (5221,3) 52,390
Colleges, universities, and professional schools; private 49,600
Colleges, universities, and professional schools; state 49,270
General medical and surgical hospitals; private 47,320

Most credit counselors work full time. They usually work standard business hours but may need to work in the evenings or on weekends to meet with clients.

Job Outlook About this section

Credit Counselors

Percent change in employment, projected 2023-33

Financial specialists

6%

Credit counselors

5%

Total, all occupations

4%

 

Employment of credit counselors is projected to grow 5 percent from 2023 to 2033, about as fast as the average for all occupations.

About 2,300 openings for credit counselors are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

The primary driver of demand for credit counselors is the need for individuals and businesses to manage their debt. Consumers will continue to need these counselors to assist them with planning debt payments, negotiating with creditors, and managing their budgetary goals. Credit counselors will be needed to develop debt management plans to help consumers with repayment of a variety of debts, including student loans, credit cards, and mortgages. However, automation software makes these workers more efficient and may temper employment growth over the projections decade.

Employment projections data for credit counselors, 2023-33
Occupational Title SOC Code Employment, 2023 Projected Employment, 2033 Change, 2023-33 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Credit counselors

13-2071 31,800 33,300 5 1,500 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of credit counselors.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2023 MEDIAN PAY Help on Median Pay
Budget analysts Budget Analysts

Budget analysts help public and private organizations plan their finances.

Bachelor's degree $84,940
Financial analysts Financial Analysts

Financial analysts guide businesses and individuals in decisions about expending money to attain profit.

Bachelor's degree $99,890
Financial examiners Financial Examiners

Financial examiners ensure compliance with laws that govern institutions handling monetary transactions.

Bachelor's degree $84,300
Financial managers Financial Managers

Financial managers create financial reports, direct investment activities, and develop plans for the long-term financial goals of their organization.

Bachelor's degree $156,100
Loan officers Loan Officers

Loan officers evaluate, authorize, or recommend approval of loan applications.

Bachelor's degree $69,990
Personal financial advisors Personal Financial Advisors

Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.

Bachelor's degree $99,580
Tax examiners and collectors, and revenue agents Tax Examiners and Collectors, and Revenue Agents

Tax examiners and collectors, and revenue agents determine how much is owed in taxes and collect tax from individuals and businesses on behalf of the government.

Bachelor's degree $58,530
Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Credit Counselors,
at https://www.bls.gov/ooh/business-and-financial/credit-counselors.htm (visited November 28, 2024).

Last Modified Date: Thursday, August 29, 2024

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2023

The employment, or size, of this occupation in 2023, which is the base year of the 2023-33 employment projections.

Job Outlook, 2023-33

The projected percent change in employment from 2023 to 2033. The average growth rate for all occupations is 4 percent.

Employment Change, 2023-33

The projected numeric change in employment from 2023 to 2033.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2023-33

The projected numeric change in employment from 2023 to 2033.

Growth Rate (Projected)

The percent change of employment for each occupation from 2023 to 2033.

Projected Number of New Jobs

The projected numeric change in employment from 2023 to 2033.

Projected Growth Rate

The projected percent change in employment from 2023 to 2033.

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.