Debt Consolidation and Making Molehills Out of Mountains

Jul 25

don't let scary debt deter you from debt consolidation services

Debt is a way of life for many. Credit cards are used to pay bills or buy things when the money isn’t in the bank account, and soon the credit cards are maxed out, and the bills still need to be paid. You can only ignore bills for so long before the creditors start calling and the utilities are shut off. Debt can be overwhelming, but there is hope.

Mountains

A credit counseling service can help you organize your bills and help you find a place to begin. They will go over your finances with you and show you how you can chop away at that debt until it is manageable. If the company offers debt consolidation services, they can help you by negotiating for lower payments and interest on your credit cards and can often arrange to have the over-limit and late-payment fees waived. Debt consolidation services also handle making the payments for you. You send one payment to the service, and they distribute the money to the creditors.

Molehills

Once the payment arrangements have been made and some of the debt has been paid, it is good to attend credit counseling. Through credit counseling, you will learn how to effectively manage your finances, so you can continue to be debt-free in the future. You will learn tools for:

Personal Budgeting

Compare your earnings to your spending and develop a plan to make sure your bills are always paid.

Money Management

Once you know how your money is being spent, money management helps you set goals, so you can plan your financial future.

Credit Management

Learn the most meaningful things for your credit and ways to rebuild your credit, so you have financial opportunities in the future.

Foundation

With debt consolidation companies like CreditGuard of America, you have paid your debts, and with credit counseling, you have learned how to make wise choices with your money. This is the solid foundation needed to build a future that is financially free from unnecessary debt. From here, you can build on this foundation by following your personal budget, saving and planning for your financial future, and adding only those things that help your credit instead of hurt it.

Of course, people will always have bills to pay, but with the right tools, those bills will not be overwhelming. Debt consolidation services strive to help people become debt-free and learn how to achieve their financial goals.

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Attack Debt with Credit Counseling Services

Jul 09

Personal debt is reaching record highs, and personal savings are reaching all-time lows. If you find yourself in these financial circumstances, a credit counseling service can assist you with reducing debt, saving more and implementing effective credit management strategies. With credit counseling services, you can begin to pay off your debts and reestablish your credit ratings. Many credit counseling services are not-for-profit and generally cost little to nothing.

How Does Credit Counseling Work?

Trained and certified financial counselors will first examine your finances. They will give you ideas and strategies to help you work out a budget after close review of your current income, living expenses and debts. You’ll be given strategies to pay back what you owe by cutting back expenses along with showing you ways to better manage your money.

If your financial circumstances warrant it, a financial counselor may recommend enrolling in a debt consolidation plan. Debt consolidation is a type of debt restructuring and repayment. The counseling adviser will contact your creditors and negotiate a payment plan that you can afford, including lowering interest rates and eliminating any penalty fees. Often, creditors are willing to accept a smaller monthly payment versus no payment if you were to file for bankruptcy. Once the payment plan is agreed upon with your creditors, you’ll just have to make one simple monthly payment to the credit counseling agency. They will then distribute the money among your creditors.

Credit Guard credit counseling services also offer credit management education workshops and classes. It may be tempting to skip it because you can now pay off your debts. However, go ahead and take advantage of the financial education. It is essential to helping you stay out of debt. You’ll learn how to effectively manage your expenses, use credit wisely and create a future financial plan. You can never have too much knowledge. When it comes to credit management, a little discipline, diligence and knowledge go a long way. Armed with the right stuff, it’s a lot less likely that you’ll wind up in debt again. The next time the phone rings, it won’t be your creditors.

For the most part, credit counseling agencies usually operate in this type of three-part program. If you’re struggling with credit management or debt, these agencies can be a lifesaver.

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Good Credit Management — Pay More than Minimum Payments

May 24

Learning credit management strategies can help you retain more money after paying your monthly bills to fund retirement plans, start building wealth, invest in stocks or meet other financial goals. Unfortunately, credit card debt carries a hefty price tag, not only to pay off the principal but also to pay interest rates that range from 20–30 percent. Some people have accumulated so much debt that they have negative amortization — in other words, their monthly payments don’t even cover interest charges, so they are accumulating interest on interest.

pay credit card balances

Minimum Payments Barely Cover Interest

Paying the minimum amount each month on your unsecured loans barely covers interest charges, so your balances only drop negligibly, and you can’t get new credit without taking on more debt. Many people can barely afford to keep up with minimum payments, and some people get so overextended that they can’t get out from under their monthly bills.

  • Paying off debt is the best way to increase your spendable income, strengthen your buying power and change your lifestyle.
  • Most people buy nonessential luxuries because they get easy credit and don’t consider it the same as hard-earned cash.
  • Paying unexpected living expenses or dealing with emergencies or medical costs could generate massive debt through no fault of your own.
  • Taking responsibility for your debts protects your credit, but many people can’t figure out how to break the vicious cycle of paying astronomical interest charges

Credit Card Debt Consolidation

Some people have legitimate reasons for falling behind on their debts, and others have simply made some foolish choices because they never learned proper money-management skills. You can own the situation, face your debts and make a plan to pay down your bills by enlisting the services of a nonprofit debt consolidation company. These organizations offer benefits for people who have unmanageable debts and those who want to use their income to build wealth, save for the future or meet other financial goals.

 

  1. Trained credit counselors conduct an interview over the phone, in person or online to determine your income and all of your structured and unstructured loan obligations, monthly living expenses and financial obligations.
  2. These experienced debt consolidation specialists will devise a custom debt management plan to pay off your debts within 24 – 48 months.
  3. These credit-counseling professionals can arrange this seemingly impossible task by convincing your creditors to lower interest rates and drop fees and penalties.
  4. You only need to make one monthly payment to satisfy all your creditors.
  5. You can pay off your debts quickly because the negotiating process cuts your total obligations by thousands of dollars but protects your credit rating because you are still paying your principal debts.

Credit and Debt Counseling Gives You Better Understanding of Finances

Debt consolidation programs offer credit counseling so that you don’t make the same mistakes and learn to live within your means. Developing credit and debt management skills helps you make smarter choices about using credit, investing wisely and creating family budgets. You can rapidly retire your debt so that you can use the money you save for many worthwhile purposes and have more money to spend on luxuries or investments. Regardless of whether you seek debt consolidation services, you should consider paying more than monthly minimums to reduce interest charges and keep your financial options open.

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Finding Peace of Mind in Credit Counseling Services

May 10

When the economy declines and unemployment runs out, people need to make difficult choices about which bills to pay immediately and which ones to put off paying. However, without proper credit management, those debts can quickly add up and get out of hand. Luckily, there are credit counseling services to help you manage your debt when it becomes overwhelming.  Find a good one today!

Unsecured Debt

Typically, it’s not the mortgage or utilities that are overwhelming. Most people have difficulty finding extra money after paying their monthly bills to put towards credit card bills, student loans or unexpected medical bills. Seeking credit counseling services can help you organize that pile into a manageable monthly payment plan. A credit counselor will sit with you and help determine how much you can afford to pay every month and how you can pay those bills.

Debt Consolidation

Some services can also help you consolidate your debt, so it is easier to manage. The counselor will review the debts and help you get back on track by contacting your creditors and working with them. These negotiations could result in:

  • Lesser payments
  • Reduced interest
  • Elimination of late fees

The credit counselors then collect the payment every month from you and send the payments to the creditors. This helps by giving you one place to send a payment instead of many, and it also saves you thousands of dollars in interest and late fees. Many people find themselves able to pay off their debt through credit counseling in a fraction of the time it would have taken them on their own.

Education

Credit counseling services are not intended to take control of your finances. The goal is to teach you how to avoid getting into the same situation once you are actively managing your own debt. Some people view debt consolidation loans as a way to take control of the debt, but too often, these loans are only a temporary fix and sometimes create more problems. Credit counseling can provide the tools to help keep you from falling into debt like that again.

Perseverance

The debt that took you years to accumulate will also take you years to pay off. When sitting down with a credit counselor, you will be able to see how long it will take you to pay off the debt while maintaining payments on your other bills. Through perseverance, you can steadily reduce your debt without feeling overwhelmed.

Even some of the highest-paid executives find themselves burdened with uncontrollable debt. Asking for help in managing your debt is the best first step in getting out from under it for good. Credit counseling is designed to help you achieve peace of mind when it comes to your finances.

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There is Hope in Credit Card Debt Consolidation

Apr 24

Debt problems can happen to good people for a wide variety of reasons: loss of job, change in family structure, or personal issues. Unfortunately, once a consumer accumulates a large amount of unsecured debt, his or her recovery is difficult. The interest rates and late fees continue to rise while the consumer’s credit score continues to plummet each month the debts go unsettled. Trying to pay each credit card or loan individually becomes an overwhelming and seemingly endless task. Additionally, the consumer is unable to obtain new credit because the old debts are not paid. Some debtors give up at this point. However, there is a solution for people in this situation.

angry about debt there's hope

Credit Card Debt Consolidation

The best way to get out of debt is to consult with a company that provides debt consolidation services. A consolidation company can rid the consumer of debt within five years, as opposed to several decades. This specialized provider can negotiate with the creditors to reduce the interest rates and late charges of the unpaid debts. The company can negotiate credit card debt, medical bills, student loans and other debts.

Once the consolidator negotiates with all the creditors, it will consult with the debtor to calculate an affordable monthly lump sum payment. The provider will collect this payment and distribute it to the creditors.

Resolving debt in this manner relieves the consumer of stress and strain. The process also saves the consumer money as the negotiators can sometimes convince creditors to waive fees.

The Aftermath

Even after a consumer has completed a successful credit card debt consolidation, the services do not end. Helpful counselors can provide insightful information on money management, smart spending, and savings tactics. The organization will work to prevent future instances of overwhelming debt for the consumer. It will arm the consumer with the tools needed to succeed.

Debtors who feel trapped can breathe now that they know help is available. Speaking with a representative today can get a person started on the path to living a debt free life. Why wait? Contact a debt consolidation representative today.

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Credit Card Debt Help for the Elderly

Apr 08

Do your grandparents need credit card debt help? Unfortunately, some credit providers target newly graduated or elderly people in their advertising and direct mail campaigns, often with credit cards. The elderly may not read the fine print or misunderstand the interest and fees associated with the credit line. They use the card a few times and soon find themselves in more debt than their Social Security checks can handle.

Are there many elderly in debt?

Older generations are usually seen as debt free and careful with their money. However, if they do not understand the terms of the credit card they sign up for, they can find themselves in debt for the first time in their lives. Approximately half of all households where the oldest person is between 55 and 64 carry credit card debt.

How much debt is normal for this age group?

The average person over age 60 owes about $4,000 on their cards.  Though this is considerably less than the average household’s credit card debt, it is still tough to pay when you live on a fixed income.

How can you help?

If your elderly parents, grandparents, or friends are in debt, you can help them without emptying your own bank account. Sit down and have an honest talk with them about their debt and how they are going to pay it. If they are struggling to make the minimum payments each month, tell them about debt consolidation.

How can you explain debt consolidation?

For anyone needing credit card debt help, a consolidation is a good idea. A debt counselor will work with their creditors to reduce the amount of interest they have to pay, modifying monthly payments to a reasonable amount. This will give them a chance to pay those cards off faster while still maintaining a positive credit score. The worst thing to do is to ignore the problem. Sit down with them today and discuss their options with them.

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Non-Profit Credit Counseling: Making it Easier to Afford Higher Education

Mar 21

non profit credit counseling helping students afford collegeStudents planning to attend a public or private school will have to pay a much higher tuition than they once previously have.  According to research, tuition for private institutions increased by 4.2 percent while tuition for public schools increased by 4.8 percent.  As more institutions are unable to provide financial aid to students on the same level as they once did, students are now thinking long-term when it comes to planning for their higher education.

Students are attending local community colleges before transferring to other institutions.  Community colleges are often the most affordable, so students are completing their basic education requirements at their local colleges before transferring to other institutions.  As a result, they do not have to borrow as much to afford a higher education.  Students have been able to save thousands to make their college education more affordable by attending community colleges.

Students are using non profit credit counseling services.  Students are also able to participate in these consolidation programs as soon as they graduate.  Many people begin working with non profit credit counseling companies immediately after they graduate.  Some do this in order to have peace of mind in knowing that their student loan debt is far more manageable.  When working with counselors, they develop a budget and repayment plan for their student loans.  Some students even receive additional coaching to help them get their personal finances in order as they launch their careers.

Students who work full-time while attending school are choosing to find employment with companies who are most likely to pay for their education.  Many employers have tuition reimbursement plans in place to find the most attractive candidates.  Many companies require a person to remain with the company for a certain amount of years to be eligible for these programs.  Working students are proactively looking at employers who offer tuition repayment programs.

The average student has more student loan debt than ever, research shows.  As a result of the higher cost of education, students are now thinking long-term when it comes to affording a higher education.  Students are exploring alternative routes to make their college education even more affordable, such as debt consolidation after graduation.

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Credit Card Consolidation: How People Are Managing Medical Costs

Mar 15

credit card consolidation can help with medical expensesMedical costs and the rise of medical care needs are a concern to most people.  According to research, insurance premiums for employer-sponsored programs have increased over 97 percent since 2002.  There are several ways people are trying to manage their long-term, medical expenses incurred from unexpected illnesses and other unplanned health emergencies.

Some patients are using medical credit cards offered by health care providers to manage their medical costs.  Some medical facilities are relying on these medical cards to help them manage their health care costs.  These cards work similarly to other credit cards in that the medical expenses are financed.  There is a degree of leniency with these cards that many consumers appreciate.  They can pay back their debt more slowly and avoid certain collection activities.  Some credit cards offer deferred interest rates if a certain amount of the debt incurred is repaid within a certain amount of time.  Many of these programs have a repayment period of six months.

People are using multiple lines of credit to pay for their medical expenses.  Some people use an emergency credit card or rely on the card with the lowest interest rate to pay for their medical costs.  Some people use a combination of credit cards or personal savings to manage their medical costs. Once they’ve completed the treatment, they enroll in a credit consolidation counseling program.  Unlike the medical credit card option, there are renegotiation options that consumers can take advantage of when enrolling in a credit card consolidation program.  The credit card consolidation program at http://www.creditguard.org/credit-card-debt/ helps them organize their debt by consolidating multiple accounts into one main account.  All payments to each individual credit card company are handled through one convenient monthly payment so the person only deals with the credit counselor.  Some people are able to avoid certain fees when it comes to medical expenses if the counselor can renegotiate them with the creditor.

Working with insurance companies, health care providers, and credit card companies is stressful for the average person.  Medical emergencies are difficult to plan for when it comes to managing insurance costs, but people do not necessarily have to be caught off guard with the unexpected medical emergency.  Having an emergency fund in place with a simple repayment strategy can help one quickly pay down medical expenses.

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