Make consumer credit counseling the first step in your process of eliminating debt. Counseling offers immediate, actionable solutions to a wide variety of financial issues such as not enough income, too many expenses, too much debt or financial insecurity.
The Heart of Consumer Credit Counseling: Living Within Your Means
The main goal in any consumer credit counseling service like the one offered by CreditGuard is to draw up a budget that allows you to live within your means. It’s simple math – if you make more money than you spend, you will be more financially secure. While it may feel as though your finances are set in stone, a credit counselor will give you tips on ways that you can save money on basics like groceries and utilities. They will work with your budget to develop a financial plan for the future.
You can achieve financial independence through a process known as debt consolidation. This process will reduce your interest rates and make it so you only have to pay a single monthly payment equal to or even less than what you normally pay. You may be able to save thousands of dollars in interest payments and even pay off debts faster.
If you can lower your interest rate, your monthly payment will go toward the principal of your debt and actually pay it down rather than just keeping it level. A credit counselor will help you get out of debt by negotiating with creditors. When you consolidate credit card debt, you take advantage of the increased clout that a consumer credit counseling service has with banks to get better deals on interest rates, which translates into savings for you.
Once you get those savings, your credit counselor will be able to advise you on how to spend them in order to improve your financial standing in the future. You can put them toward savings, pay down some past due bills or even treat yourself to something special. Looking forward to consolidating credit card debt? Contact a credit counselor today!
If credit card debt is troubling you, know that you’re not alone. Many people across the nation are in the exact same situation. However, some people can eliminate their debts in a short amount of time and learn how to take care of their credit so that they are never in the same position again. They do this with a debt management plan.
Obtaining a Debt Management Plan
Debt management companies are there to help people just like you. The counselors are aware that times have been difficult for Americans over the past couple of years, and it is their job to help you eliminate your debts and remain debt-free into the future.
One way to manage credit card debt in particular is through a credit consolidator like CreditGuard. For example, you may have several open credit card accounts with high balances and high interest rates being added to the balance every month. This could make it extremely difficult for you to eliminate your debts in a reasonable amount of time.
The Answer to High Credit Card Debts
If you work with a debt consolidator, on the other hand, your interest rates will be lowered because experienced consolidators know how to work with creditors to lower these rates. It is even possible to have late payments waived. These kinds of actions will make it much easier for you to pay your monthly bills.
Preventing Credit Card Debt in the Future
While you are lowering your balances, you may require credit management counseling to keep from falling into the same financial position again. Eliminating your debts will allow your credit scores to start increasing, but you may also wish to learn how to take care of your credit so that you can obtain a loan when you need it and for a reasonable interest rate.
Credit management counseling will teach you the importance of lowering your debts and how the credit bureaus calculate your scores. This information could be extremely valuable for you well into the future, so give credit management counseling a chance to work for you today.
Every time you take on credit card debt, you borrow from yourself in the future. People make promises that limit their actions, future prosperity and abilities to weather financial emergencies, and they usually do so to eat out at expensive restaurants, buy the latest fashions or get the latest electronic devices when they already have perfectly serviceable equipment. Good credit management involves lending your future-self money instead of putting yourself in debt.
Problems with Borrowing against the Future
Unsecured credit can prove useful in emergencies, but using it actually reduces your income for years. High interest rates produce long-term monthly expenses that provide no real benefits.
- Interest rates can create minimum payments so high that you have trouble paying your bills and living expenses.
- Your future self could face real difficulties during emergencies or when unexpected expenses come due.
- A better credit management strategy is to put aside money in an emergency fund to support you and your family for six months.
- Instead of borrowing from yourself, you’re lending yourself money that earns interest and gives you greater options in the future.
Retiring Credit Card Debt
According to financial experts like CreditGuard of America credit card debt, student loan debt and other monthly expenses can make it hard to stay above water. You might be tempted to take on additional debt just to pay ordinary living expenses, but this scheme will only make things worse.
- Paying minimum monthly payments will keep your balances high because you’re mostly paying interest charges each month.
- You can reduce your monthly interest and reduce your balances faster by paying more on your credit card debt each month.
- If you can’t afford higher monthly payments, you should consider debt consolidation programs.
Debt Consolidation Provides Genuine Debt Relief
Unlike some programs, non-profit debt consolidation puts your interests first. You get a personal debt counselor who will study your income and debts and organize a custom debt management plan. The basic feature of the plan involves the counselor’s ability to persuade your creditors to reduce your interest rates legally. Your monthly obligations drop, and you can pay your balances faster.
Other benefits of debt consolidation include consumer credit counseling so that you can learn how to handle your money in ways that will benefit your future self, family members and financial goals. Learn better credit management techniques by contacting a debt consolidation service.
There are solutions for you to achieve relief from debts that feel overwhelming. The most important thing is to remember that you can get out of debt. All you need is a little help. Credit management agencies are non-profit organizations designed to help clients get and stay out of debt. Debt can prevent you from achieving the most from your life. Don’t let debt get you down any longer. Contact a credit management agency in Nevada and see how you can start getting debt relief today!
How Credit Management Works
Credit management consists of two parts – short-term financial education and long-term debt relief. These two elements work hand in hand to ensure that you get the tools you need to stay out of debt for the rest of your life, if you use them properly. A credit counselor will work with you every step of the way to help you keep your eye on the prize.
The prize of credit management is having good credit, which is useful in endeavors ranging from getting a loan, purchasing a car, buying a house or even getting a job. Good credit will open a lot of doors in your life, and if you manage your finances properly, it is within your grasp. All you have to do is follow the rules and do the right things.
A Nevada credit counselor like Credit Guard will be your mentor, guide and confidante in your journey to financial solvency. He or she will help you learn how to build and keep a budget by tracking your purchases, paying your bills on time, setting up a savings plan and calculating how much you can spend on non-essentials. Nevada credit counseling also consists of receiving emotional support during the difficult time. Counseling professionals know that it can be very difficult to be in debt and pay it off, and they are very good at coaching you through it. The skills you learn in credit counseling can be applied to financial situations for your entire life.
The long-term solution for your immediate debt problems is known as debt consolidation. Consolidation is the process of taking all your unsecured loans, credit cards and store cards and making it so you only have to pay one monthly payment. It is not another loan, and it will not harm your credit score. The logistics involves giving the credit management company access to your loans and having them pay off the debt on a monthly basis.
They will negotiate with creditors on your behalf to get lower interest rates and secure lower monthly payments. This way, the total monthly payment you make to the management company will be far less than if you had continued paying each one separately.
Credit management companies provide a boost to your credit score, because as long as you pay them, they will make sure that all of your loans get serviced. Sometimes it can be difficult to track all of your credit card payments, and if you forget one, even if you had the money to pay it, your credit score might be damaged. With a credit management company, that will never happen.
Credit management services provide peace of mind and help you get your finances back on track. If you’re looking for debt relief, sign up for credit management today.
Building equity in your home can take years of patience and hard work. Typically, it means lots of mortgage payments and often lots of home improvement projects. Many homeowners who have equity in their homes and who also find themselves facing a lot of unsecured credit card debt may be tempted to draw out that equity in the form of a home equity loan, using the proceeds to pay off high-interest debts and reap the savings. On the surface it sounds like a good plan: Use a low-interest home equity loan to pay off high-interest credit card debt. But in reality, it can be a huge prescription for disaster. Here’s why:
When you have credit card debt, it’s not tied to anything – that’s why it’s called unsecured debt. A home loan like a mortgage, equity loan or equity line of credit is tied to your home. That means that if you can’t afford to continue to make payments on the loan, the lender can take away your house. If you default on a credit card, there are also consequences, but usually the risk is much, much less substantial. Stop and think about it: Do you really want to lose your home over your credit card debts? Were all those things you bought with credit worth losing your home for? If the answer is no, then a home equity loan is too risky for you.
But don’t despair: Just because a home equity loan or line of credit is off the table, that doesn’t mean you don’t have any other options for paying off your debt quickly and at less cost than you might imagine. One of the most powerful ways to pay off debt and pay it off quickly is to enlist the help of a credit counselor or debt consolidation company. In debt consolidation, credit counseling experts like those here contact your creditors and work with them to negotiate lower interest rates to reduce your monthly payment obligations and help yourself get out of debt. They’ll also set up a monthly payment schedule that uses just one single payment to pay back all your creditors over time. That means that instead of writing out a lot of checks for different debts, you’ll only need to write one check to cover all your monthly unsecured debt payments. The credit counselor will use that payment to meet all your monthly obligations.
Credit counselors can also provide the guidance you need to establish the kind of regular, healthy financial habits that will keep you out of the debt trap and place you firmly on the path to a happy financial future. They can provide you with the educational tools you need to better understand your finances and the underlying causes of debt. In short, they can empower you to make the financial decisions that are best for your life.
So forget about risky home equity loans or other debt consolidation loans. You have the power to conquer your debt and build a strong financial future. Credit counseling and debt consolidation are two powerful tools to get you there.
If you’re in debt, you’ve probably accumulated a lot of that debt by buying stuff. That means you’ve done a lot of shopping, and you’re probably used to making judgments about the products you buy and the companies that manufacture them. You may have some pretty tough criteria when it comes to determining if a product is worth your money. But, what you may not realize is that when you need to apply for a loan for, say, a car or home, you become the “product” that’s judged by the lender. If you want to be considered favorably, you need to be sure to take steps that make you attractive to the lender, and that means keeping your credit and finances in check and getting your debt under control.
Generally, most lenders have two primary criteria they use when considering whether or not to offer a loan or credit card. The first of these is your credit worthiness as demonstrated by your credit report and score. Your credit report contains lots of information about your current loans and credit cards, including how often you’ve been late and how many times you’ve recently applied for credit. These reports also tell the lender how much credit you’re using, how close you are to reaching your credit limits and if you’ve ever exceeded your limits. This one point cannot be overstated: You must establish and maintain good credit management habits in order to be viewed favorably by the lender. That means paying your bills on time each and every month and using your credit wisely by remaining well within your limits.
The second primary factor lenders look at is your debt-to-income ratio, or DTI, which is just what it sounds like – the amount of your income compared to the amount of debt you’re carrying. A high DTI means your debt is high compared to your income. Even people with good credit histories can be denied for loans if they’re carrying a lot of debt.
Getting your Debt Under Control
Understanding how lenders are judging applicants makes it easier to know the steps you need to take to improve the way they look at you. But, that doesn’t mean improving your credit or paying down your debt is any easier. There is one way to improve your payment and pay down your debt quickly all in one step: Enroll in a credit counseling and debt management program with a company like Credit Guard. Debt and credit counselors work with their clients’ creditors to have interest rates dropped, so monthly payments are lower and, therefore, more affordable. That means you can pay your debt down much more quickly. They also combine all your debts into a single sum and provide you with a simple once-a-month payment plan that improves your credit history and credit report.
Even if you don’t need a loan now, unless you’re independently wealthy, chances are you’ll need a loan in the future. Paying down your debt and managing your credit will help ensure that, when the time comes, you’re offered the best loan terms available.
Instead of managing several high interest loans, consumers can consolidate their debts with one loan and lower interest rates to pay off their debts. This way, less is spent on interest payments each month and how much is spent over the lifetime of a loan is reduced. Writing just one check is also easier instead of having to write multiple checks to different financial institutions. No longer will you have to remember which day of the month payment is due or which loan to pay. All in all, debt consolidation reduces the number of steps involved in servicing your debt.
How to Consolidate Debt
There are three ways that you can consolidate debt. You can do it yourself, but will need to decide which type of loan works best for your situation. You can even contact your creditors directly and try to work out more flexible payback terms. Then, you can shop around for the best loan. After you’re approved, it’s a matter of paying off the existing loans.
Local financial institutions like credit unions and banks can also assist with debt consolidation. Just call the institution and ask to speak with someone who can help you with managing your debt. Local credit unions and banks value local business and are often interested in helping you get out of financial trouble.
There are also debt relief services that offer credit counseling services and different game plans to help you get out of debt. With credit counseling services, you’ll get help with addressing the core of your debt problem. Financial counselors will help you develop a monthly budget and manage your money. Some debt relief services like Credit Guard offer debt management plans that entail debt consolidation. Depending on your financial picture, a financial counselor may recommend debt consolidation. A financial counselor will also negotiate lower interest rates and get your creditors to waive specific fees. Over time, you’ll be able to pay off your unsecured debts and improve your credit score.
Qualifying for Debt Consolidation
Income, payment history and assets are the three factors that banks and lending institutions look at when you’re applying for a debt consolidation loan. Creditors will want to determine how likely they are to get paid back. Lenders will look at your income and total debt to analyze how much debt you can carry with your current income. Lenders also want to know take a look at your payment history to determine how stable a borrower you are. You can find unsecured debt consolidation loans, but home equity loans require the pledging of assets to the loan.