Credit and Debt Management

Sep 27, 2013 by

Many people carry debt, and debt management is a skill that most of us have to learn as we go forward in life. Whether you’ve acquired your debts in service of your education, to pay for medical emergencies, auto repairs or simply to pay for necessities like groceries, you may need a little help managing it all. If after consideration you feel that you could use some help to pay down your credit cards faster or get lower monthly payments, debt consolidation might be the solution for you.

What is Debt Consolidation?

According to companies like CreditGuard, as a debt management program consolidation is one of the lowest-risk options that still provides a sizable reward in terms of savings over time. By consolidating all of your monthly payments into a single low-interest payment, you save thousands of dollars in interest over the terms of your loans. Some consumers have reported paying off their credit cards and other debts much sooner than they would have otherwise done.

Debt consolidation is NOT a new loan. Remember that if a company asks to take out a new loan, it might not be in your best interest. New loans could lead to credit score reductions. Instead of taking out a debt consolidation loan, what you want is a debt management company that will make payments to your credit cards and other unsecured loans each month on your behalf.

You only have to make the single monthly payment, which is often less than or equal to what you’d otherwise have to pay. The difference is that more of your money is going toward the principal, letting you pay down your debts that much faster. This will subsequently improve your credit score that much faster.

Managing Your Debt Permanently

While debt consolidation programs offer a way to get out of your current debt more quickly, there are permanent debt management strategies that you can learn through credit counseling. Many organizations offer consolidation and counseling under the same roof, with the aim being that consolidation is for the present while counseling is for the future. Counseling will give you the tools you need to make budgets, save for the future, invest wisely and develop five- and ten-year plans to ensure your financial security.

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How You Can Get Out Of Debt

Aug 28, 2013 by

save money and get out of debt

Non-profit debt consolidation programs are the way to go if you have debt problems and need to fix them quickly. Sometimes, debt piles up due to unforeseen circumstances – medical bills, car troubles, emergency home repairs or family emergencies. If just making the minimum payments concerns you because of the time it will take to pay off your debts, consider debt consolidation.

A debt consolidation service will significantly reduce the amount of time it will take you to pay off your debts. You can also save thousands of dollars in interest fees by consulting with non-profit debt consolidation programs. All you have to do is get started.

How Debt Consolidation Works

Debt consolidation can help you get out of debt save you money because of the unique nature of the service. They will use their clout to negotiate with creditors to lower your interest rates, waive fees and reduce minimum monthly payments. On top of that, they will pay all of your outstanding personal loans and credit cards on time. All you have to do is pay the consolidation provider an affordable payment every month. This ensures that not only will you not miss a payment, but your credit score will go up, making you eligible for even lower interest rates over time.

Debt Consolidation and Credit Counseling

In addition to giving you the immediate relief that comes with lowering your debt service payments, non-profit debt consolidation programs like CreditGuard of America also help you get out of debt by providing credit counseling. A counselor will sit with you, go over your financial situation and help you construct a budget outlining your monthly expenditures. Your counselor will show you where your money is going and give you practical tips for how to be more frugal and live within your means.

Credit counselors will also help you learn how to read the fine print in credit card offers. While ideally you will not need to use credit cards, you should also be able to tell the difference between offers you can temporarily afford and ones that you should run away from at all costs.

Consolidation and credit counseling are two sides of the service provided by non-profit debt consolidation programs. These programs offer you a way to get out of debt and stay out of debt. As long as you follow their suggestions, you will be in good financial shape.

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Attain Good Financial Health with Good Credit Management

Jun 15, 2013 by

Having a good credit score is essential to your overall financial health. A good credit score can enable you to get that home and car that you’ve always dreamed about at good interest rates. It can also help you get lower insurance rates and even that job that you’ve been wanting. It’s amazing how many consumers get blindsided not knowing that prospective employers and car insurance companies keep a careful watch on their credit scores. If you’re struggling with multiple forms of debt like medical bills, auto loans, credit cards or utility bills, it’s important that you take action to maintain a good credit score.

heal yourself from debt

Get Help from Your Lenders

Don’t be afraid to contact your creditors if you’re falling behind on your financial obligations. Many creditors are more than happy to help resolve your financial problems. You can call your creditors and ask to speak with a financial representative, and just explain your circumstances. They may be willing to be flexible on terms and even readjust the due dates for payment. The point is to call and ask. You won’t know what your options are unless you try.

Credit Counseling Services

There are also non-profit agencies that offer credit counseling services for credit management. Many of these agencies do not charge any upfront fees and can assist you with developing a monthly budget or structuring a repayment plan that is doable. If you need further assistance with managing your debts, the financial counselors at these agencies may help you with debt settlement or debt consolidation. With debt settlement, financial counselors negotiate with your creditors for a lump sum settlement. For example, if you owe a creditor $15,000 a counselor may be able to settle on an agreeable payment of $8,000 to eliminate the debt.

If you opt for debt consolidation from a place like this website, all of your debt can be lumped into one payment and distributed among your creditors. In this situation, your financial counselor will work directly with your creditors to eliminate penalty fees and to negotiate a lower interest rate. Not only are you likely to get an affordable monthly payment, it’s a lot easier to pay just one loan than multiple ones. All around, you’ll be on the road to good credit management, a good credit score and financial freedom.

You’ll also find that many credit counseling services also offer educational programs for money management, budgeting and tips on how to stay out of debt. Taking advantage of these educational programs is one of the best ways to stay out of debt, so you don’t wind up with financial problems again.

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