When overwhelming debt makes it difficult to pay your monthly bills, debt consolidation services can help to reduce your interest rates, consolidate bills into one payment, and provide credit counseling so that you can make better financial decisions in and for your future. However, you first need to choose a reputable program that is right for you and your needs. You can find companies that will help you online so that you have complete privacy when you explore debt consolidation services.
Understanding How Debt Consolidation Services Work
Debt consolidation services are provided by financial companies that can help to lower your payments and pay off your unsecured debts in months instead of years, but finding a reputable company is crucial if you want to get out of debt. Here are some tips and ideas for choosing the right service for you:
- Choose a nonprofit service or company that is licensed to operate in your state.
- Find out if the companies offer debt relief by negotiating with creditors and whether they plan to study your finances before recommending a debt management plan.
- Reputable credit counselors must offer free financial counseling, and you should find out whether representatives earn commissions for enrolling clients.
- Find out what each company or service charges in fees.
Learning How to Manage Your Money
A good plan for handling money is to set up an emergency fund to help support you when unexpected expenses or emergencies make it hard to pay bills. Professional credit counselors working at debt consolidation services will advise you to try to put aside two to six months of your monthly salary to pay for emergencies such as losing your job, medical emergencies, or auto and home repairs.
- If you have no emergency savings, every unexpected expense can force you to use high-interest credit cards or astronomically expensive payday loans.
- Reserve and use your emergency fund for real emergencies.
- Credit counseling services will help you learn how to save money and make better decisions about how you spend your income.
- You might consider changing your withholding at work so that you have more net pay each month to spend and can resist buying things on credit.
Debt Consolidation Services and Companies Protect Your Credit
Repaying your debts on time and following your personal debt management plan with CreditGuard of America will protect your credit. By working with debt consolidation services and companies, your credit score will be protected, which will help you qualify for mortgages and insurance discounts as you pay off your debt and improve your financial reliability. With a good credit history and a reliable credit score, this will inform potential employers of your character and dependability. Taking care and being aware of your credit score directly affects your potential to succeed in the future. If you are neck-high in debt, seeking help and advice from debt consolidation services will help you to reduce your debt while they protect your credit.
No other method of handling credit card debt offers as many benefits as debt consolidation services and companies. The important characteristic and factor to look out for is the service or company’s reputation. If you are looking to reduce your debt to pave way for a more profitable future, seek aid and advice from professional debt consolidation services to help you maximize and unlock your true potential.Read More
Your credit habits may be making your wallet thin, but research has shown they may also be making your waistline fat. A study from researchers in New York show that consumers spend about 40 percent more on unhealthy foods, like fast food, sugar, and fat-laden snacks, than consumers who rely solely on cash. The reason? It’s a lot easier and more convenient to reach for plastic when you’re craving some empty calories than it is to decide whether or not you can afford it based on the cash you have on hand. Using cash focuses you to think about what is being purchased, including all those extra calories you’ll be consuming.
By contrast, credit allows you to purchase solely on that immediate impulse you feel when you see something yummy. That’s not surprising: Credit cards are responsible for most of the impulse purchases consumers make and it’s a number one reason why so many people fail at good credit management.
Here are a few tips I found from my time in Credit Guard debt counseling to help you avoid credit card bulge:
- Cash is king: Use cash when it’s time to buy food – at the supermarket, at convenience stores, at coffee shops and restaurants – even when you order takeout. Using cash automatically forces you to place limits on the money you spend and it also forces you to make conscious decisions about the food you’re buying. Ideally, leave your credit cards and debit cards at home.
- Limit funds: Decide ahead of time how much you want to spend on food- not just for a weekly shopping trip, but for lunches out and impulse buys like snacks or drinks. Carry only that amount with you when you go out for food. Make it easier to keep food money separate from bus and cab fare or money for other purposes by keeping it in a separate envelope in your wallet or purse.
- Make a list: Before you go grocery shopping, make a menu plan for the week and then make list of the items you need including items for meal preparation for later in the week. It’s OK to include a few non-essential food items; just make sure they fit in your budget and that you buy them intentionally, not as impulse purchases.
- Pack your lunch: It’s easy to pack in a few extra hundred calories when you pick up your lunch at a fast food place or restaurant without planning it out in advance. Aim to pack your lunch at least three days a week to cut down on cost and calories.
- Redirect your savings: By implementing these strategies, you can lose weight and have more energy, and you’ll also have more wiggle room in your budget. Divert some of those funds to paying down that credit card debt you racked up when you were using it to make your food purchases. If you need some help making a meaningful dent in your debt, contact a credit and debt counseling program and begin working with a credit counseling expert to reduce your interest rates and create a once-a-month payment plan that fits your budget.
If you’re juggling payments on financial obligations and struggling to pay the bills, finding sources of extra cash can make a big difference and enhance your credit management. While cutting back on spending certainly helps, there are additional ways to free up more cash.
Increase Insurance Deductibles
Increasing your homeowner’s insurance deductible from $250 to $1,000 may decrease your annual premiums up to 25 percent. In addition, it will discourage you from filing small claims with your insurance provider that may result in an increase in premiums or risk getting dropped by your insurance provider. Raising your auto insurance deductible from $250 to $1,000 is likely to lessen your annual premium by 15 percent or more. With the savings, you’ll have extra cash to help pay off your debts. You may even have enough to add money to your household emergency fund.
Refinance Your Mortgage
If you have an adjustable rate mortgage that’s about to take a hike or a high interest rate mortgage, calculate the financial benefits from refinancing to a lower, fixed rate. Refinancing can result in lowering a monthly mortgage payment by hundreds of dollars. Just keep in mind that closing costs are typically two percent of the remaining balance. You’ll need to calculate whether or not you plan to live in the home long enough for the monthly mortgage savings to balance off with the closing costs.
Adjust Your Tax Withholding
Instead of getting a sizeable refund at tax time, you may benefit more from having extra money in your paycheck every month instead. Talk with a tax accountant and inquire about increasing the number of allowances on your tax withholdings.
Review All of Your High-Tech Extras
Cell phone bills, cable costs and expenses for Internet plans can tally up to a hefty fee each month. Review your plans to ensure that you’re not paying for more service than you actually use. Do the research and see if there are any special deals that you qualify for with other competitor services. High-tech providers are always offering new perks to gain new customers.
Get Credit Counseling Services
With credit counseling services from Credit Guard, you can get credit management advice from certified financial counselors. Many of these counseling services charge little or no fees. Your financial counselor will review your financial situation and help you develop strategies to manage debt. In addition, counseling services generally offer online tools for financial calculating and free workshops to sharpen your financial skills.Read More
If you have a considerable amount of unsecured loan debt, it may feel as though it is impossible to get out of it. The inconvenience of bill collectors calling and the financial burden of high-interest payments may cause undue stress and hardship. Debt consolidation and money management are two ways that you can turn those difficulties around and come out financially secure.
Money management skills are the foundation for lasting credit card debt relief. You can use them for the rest of your life to keep financial stress at bay for both you and your family. At the heart of money management is creating a budget and sticking to it. By managing your money correctly, you can pay all of your necessary bills and still have enough to live comfortably without taking out anymore loans or credit cards.
A debt consolidation program offers free initial consults with money management experts. They can give you helpful tips and work with you to sketch out a plan of action that will pay down and free you from debt.
About Debt Consolidation
First in the box of money management tools is credit card debt consolidation. Credit card consolidation allows you to take the debts attached to multiple high-interest unsecured loans and make a single, affordable, reduced-interest monthly payment. It is not another loan, and it will not negatively affect your credit score.
Debt consolidation provides many benefits for your finances. First of all, debt consolidation makes monthly payments far more affordable. This gives you additional money to put towards essentials like housing, food and utility bills. It also reduces the amount of interest you pay towards your debts, lowering the total amount you need to pay them off. Furthermore, debt consolidation can help you raise your credit score by showing that you are making regular, consistent, on-time payments. Finally, debt consolidation provides emotional and financial relief. You don’t have to worry about being inconvenienced by creditors calling about your debt.
Credit Counseling Free Consult
When you are deep in debt, you can turn to a credit counselor for help with both emotional and financial problems. Your counselor will help you set a plan and stay on track to pay down your debts. You can also take classes to learn how to set up a budget, make a payment plan and achieve your financial goals. Managing your money alone may feel like too much to handle, which is why a debt consolidation program provides a free initial call and consultation. This gives you the chance to see if the program is right for you.
Debt Relief Today
If you’ve been looking for a way to get out of debt, relief is in sight. Don’t let credit card debt continue to pile up. Find a good debt consolidation program to help you eliminate your debt and get a handle on your money. Debt consolidation is not another loan, and it is safer than bankruptcy for your credit rating. Achieve debt relief today!Read More
While it may not be all that difficult to get credit cards, understanding credit management and how credit and debt can affect your life is not so simple. Here are a few of the most commonly asked questions about credit and debt:
1. What’s the difference between a credit report and a credit score?
Credit reports are comprehensive listings of all of a consumer’s debts and loans and include information like the amount of the debt, the amount of the monthly payment associated with the debt, whether or not the consumer has ever exceeded their credit limit and if they’ve ever made late payments. It also contains reports of collections and any court actions that have been taken with regard to debt. Credit scores are calculated based on the information contained in a person’s credit report using specific algorithms. The most common credit score is the FICO score, calculated by the Fair Isaac Corporation, but there are other scores, and many lenders even have their own scoring systems.
2. How can I find out what’s on my credit report?
In the United States, every consumer is eligible to get a free credit report annually from Transunion, Equifax and Experian, the three main credit bureaus. You can request a credit report every 12 months for free by visiting www.annualcredeitreport.com. You are also entitled to a free credit report if a lender denies your application for a loan or credit card based on information they found on your report.
3. What if there’s an error on my report?
If you find an error – and it happens more often than you may imagine – you can report it to the credit bureaus, and they are obligated to contact the creditor to ensure the information is correct. Once the determination is made, you’ll be notified of the decision. If the error is not removed and you believe you are correct, you can contact the creditor directly to obtain validation and verification to substantiate their data.
4. How long will it take me to pay my debt if I pay the minimum amount each month?
The best way to learn that is to use a credit card calculator. These tools, which can be found online, will ask you to type in your current balance, your current interest rate and your current monthly payment, and they may also ask for your credit card company’s payment amount – usually a percentage of the balance. This can be found in your terms and conditions. Using that data, the calculator will be able to show you how long it will take for you to repay the entire amount. It will also be able to show you the amount of interest you’ll pay. Many calculators also let you try different scenarios – for instance, what would happen if you increased your payment by a specific amount each month?
5. What’s the fastest way to pay back my unsecured debt?
Reducing your interest rates and eliminating late fees is an effective way to make your monthly payments go farther. Debt consolidation companies can work with your creditors to substantially reduce your interest rates, reduce or eliminate fees and establish payment arrangements that work for you and reduce interest. Their credit and debt counseling experts can also help you learn about credit consolidation and provide support and guidance for credit card debt relief.Read More
Credit card debt can be extremely difficult to shake, and at times it can seem to the borrower that the debt is piling up without end. Because credit card companies can hike up interest rates at virtually any time, it can be extremely difficult to pay down the debt in a timely fashion while still keeping up with other items of a borrower’s monthly budget. In times like these, seeking professional credit card debt help can be necessary for the borrower to recover financially and preserve as much of their lifestyle as possible.
Professional credit counselors are available to aid borrowers in both managing their existing debt and avoiding debt in the future. These credit counselors can offer credit card debt help at no upfront cost by going over a borrower’s financial information with them and seeing areas that they can improve in. If it is possible for a borrower to reduce their expenses to the point where they can pay their credit card debt safely then a credit counselor may be able to show the borrower how to do so and avoid any further financial problems. Otherwise, if the borrower still shows a deficit at the end of every month the credit counselor may suggest some solutions.
One of the main solutions that credit counseling agencies promote for credit card debt is a credit card consolidation program. Under a credit card consolidation program all of the borrower’s lines of credit are condensed into a single monthly payment. This monthly payment becomes lower than the sum of the payments of all the credit lines combined because the interest rates will be lowered as well. The credit counseling agency works directly with the credit card companies to make sure that the borrower gets the lowest possible rates during this time, and the credit card companies will usually agree provided they see that the borrower has joined a credit card consolidation program.
There are other options for tackling credit card debt, but most of them will damage the borrower’s credit score or require more drastic methods. Credit card consolidations are fairly simple and they never damage the borrower’s credit. While they do require that the borrower refrain from opening new lines of credit, they usually allow the borrower to keep one or two lines of credit open and out of the credit card management program so that they have recourse in the case of emergencies.Read More
For thousands of people worldwide, debt is an aspect of life that is struggled with on a daily basis. These people who are in debt are hard pressed to find a way out, because debt naturally tends to cause more debt. Debts and credit are quick and easy ways to fix a temporary financing problem, but they cost a lot more in the long run especially since many users of credit cannot or do not pay off their debts quickly which lets interest accumulate. When many people take out a debt in their name they don’t often realize the full impact the debt can have on their wallet and their life as a whole.
The great news is that, in today’s world, there are many services and institutions available to help you get out of debt. From credit counselors and financial advisers to banks, third party relief systems, or even a creditor’s own resources department, there is help for you to you begin the journey to debt relief. Some debt services may cost money, or some might be provided for the clients of a financial service provider. However, in many cases you can get a free consultation to get started in the right direction.
Debt relief isn’t an instantaneous, or even overnight, sort of thing. Nobody hands you a, “You Are Now Debt Free,” card and you go about your life. No, it is an achievement that is attained with perseverance and effort, and it is an accomplishment that lasts long after the debt(s) are paid in full. It is about finding a balanced financial lifestyle as much as much as it is about stopping collection calls and paying off that large red number at the bottom of your budget.
The first step—which is seeking debt relief—is often the hardest. Many of us believe we are alone in a hole that we dug, which is not true. Despite popular belief, creditors don’t exist to hound you about your debt problems. They want you to pay off your debts as much as you do, and if asked many are willing to help you find a path to relief. Look into debt relief and ask about debt consolidation programs to attain your goal of financial independence.Read More