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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Debt Consolidation Programs for Payday Loan Debt

Jul 30, 2013 by

Payday loans were meant to help keep you out of financial difficulties, but they can have the opposite effect and create a much more difficult financial hole for you. If you obtained a payday loan that you couldn’t pay back on time, you may have taken out another one to pay back the first. If you continued on this cycle, you may have several payday loans that are impossible for you to pay back.

What Debt Consolidation Programs Are Not

You may have heard of debt consolidation programs for people in credit card debt, but you can enter into these programs with payday loan debts. First, you must understand what debt consolidators cannot do.

Debt consolidators are not lawyers, so they will not be able to give you legal advice. They also are not part of a collections agency, so they will not purchase your debt. When you hire a debt consolidator, you will not meet with her on a regular basis.

Debt consolidation programs with a non profit company like Credit Guard are not debt consolidation loans. Your debt consolidator will not suggest that you take out a home equity loan and will not assist you in this area if this is what you decide to do. If you determine that the only option for you is bankruptcy, your debt consolidator will not be able to help in this arena either, but you may be able to obtain a referral to a good bankruptcy attorney.

Debt consolidation programs are also known as debt management programs. Your consolidator will not settle your debt for a lower amount. Consolidators can reduce the balance by asking your creditors to waive late fees and penalties, but they will not ask your creditors to accept an amount of money that is lower than the amount that you owe. However, your consolidator will seek to lower your payments by asking your creditors to lower your interest rates.

What Is Possible on a Debt Consolidation Program?

Debt consolidation programs offer people the help of useful credit counselors who will seek to eliminate your debts and also offer you money management advice. In your first meeting with a debt consolidator, you will find out if the program is right for you. If so, the consolidator will make a new offer to each of your creditors for an amount that you can easily pay each month. They do this by asking for a lower interest rate on your debts.

The Benefits of Debt Consolidation Programs

Once you find that your monthly payments are lower and easier to pay every month, you will immediately begin to enjoy life again. You will save a lot of money on interest over the years, and it will take much less time for you to re-pay these debts in full. If you were receiving calls from collections agencies, these will stop. You may even begin to save money so that you will never need to take out a payday loan again.

If you take out a debt consolidation loan, you will not eliminate your debts quickly. A better solution is the debt consolidation program that will reduce your debts to zero in less time than you could have imagined.

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Consumer Credit Counseling Makes Debt More Manageable

Jun 28, 2013 by

Being in debt is no walk in the park. People experience financial troubles for all sorts of reasons that are out of their control, and it’s often frustratingly difficult to break the cycle of debt.

With debt consolidation help from an experienced, trustworthy credit counseling service, you can simultaneously shorten your debt repayment schedule and accrue these important benefits.

Lower Interest Rates and Smaller Monthly Payments

Many programs and services that claim to reduce your interest rates and monthly payments actually do just the opposite. Some demand that you sign for expensive loans that can take years to repay and accrue thousands of dollars in interest charges; others require you to put up your home as collateral. This is a risky move that can have many unforeseen consequences.

Choose a debt consolidator that negotiates directly with your creditors in good faith. A reputable provider can secure lower interest rates from each of your creditors and consolidate your debts into a single monthly payment that all parties can accept. With the right debt consolidation help, you’ll pay less interest over time and have more money left over in your monthly budget.

Powerful Knock-On Effects

Reduced interest rates and a simplified monthly payment plan are sure to reduce the financial stress that you feel. A more sustainable budget will give you the breathing room that you need to tackle the other debts you might be facing. Use your debt consolidation savings to pay down your mortgage a little faster or tackle those stubborn student loans that have been accruing interest for years. With the right partner, you’ll never have to deal with debt on your own.

Credit Score Protection

protect your credit score

If you’re dealing with lots of unsecured debt or worry that you might run into financial difficulties in the future, you might be considering a number of different options. Unfortunately, some supposed solutions to debt troubles have dramatic side effects. Avoid too-good-to-be true plans that promise fast relief from debt without any trade-offs at all. Since such plans can cause serious long-term damage to your credit score, they may have unintended consequences that aren’t explained upfront.

Money Management Advice That Lasts a Lifetime

Although it can often feel like you’re up against the world, a nonprofit credit counseling organization like Credit Guard will always have your best interests at heart. In addition to negotiating with your creditors to secure favorable interest rate reductions, fee waivers and repayment terms, a reputable outfit can give you top-notch financial advice that you’ll carry long after your debts are gone. You’ll receive a free call and consultation, ongoing money management advice, and a wealth of information about long-term saving and planning. With these tools in hand, you’ll have all the confidence you need to put your debts behind you.

If you need debt consolidation help from a reputable source and can’t afford to take on additional loans, choose a credit counseling service that works hard to improve your financial health and help you reach your long-term goals.

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