Which of the following is a result of financial counseling for credit unions?

Financial counseling in credit unions aims to assist members in making informed financial decisions, managing debt, and improving their overall financial health. One significant outcome of this counseling is loss reduction. When members receive guidance on budgeting, debt management, and financial planning, they are more likely to avoid defaulting on loans or falling behind on payments. This proactive approach not only helps the members navigate their financial situations more effectively but also leads to fewer losses for the credit union itself. By reducing the incidence of missed payments and delinquencies, credit unions can maintain a healthier financial portfolio, thereby enhancing their sustainability and ability to serve all members.

In contrast to loss reduction, other options imply outcomes that do not typically align with the goals of financial counseling. For instance, increases in personal loans might indicate a reliance on borrowing rather than improved financial stability, and higher transaction fees would suggest a less favorable environment for members. A decrease in member services could detract from the overall purpose of credit unions, which is to provide support and resources to their members. Thus, the focus of financial counseling aligns closely with loss reduction as a beneficial result.