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.
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.read more