What You Can Learn From Consumer Credit Counseling

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Jul 26th, 2013
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debt management can help you save moneyMany consumers today are struggling with their finances. For some, cash flow is tight, and this can make life burdensome. Others may already be falling behind on payments. While there are many causes of financial challenges, for many consumers, the root cause boils down to issues with debt. Secured debt, which is tied to an asset like a house or a car, often has a fixed term and lower interest rates. Unsecured debt may have a revolving term and a higher rate, and it may take up to 30 years or longer to pay these debts off in full when you make only the minimum payment. Because of this, the monthly payments associated with these debts can be burdensome to deal with for a considerable portion of your life. If you are looking for a better solution to overcome these common financial challenges, consumer credit counseling can be enlightening.

Improved Budgeting Efforts

Credit counseling with an experienced credit counselor can be beneficial for a number of reasons. Most counselors will take time to review the consumer’s budget. This process can reveal if consumers are living beyond their means and relying on debt for basic living expenses. The process can also reveal if other factors are contributing to a debt problem. For example, when consumers lack a sufficient balance in their savings account, they may be forced to live on borrowed money or to borrow money when they run into emergency financial situations. The counselor can help you to identify the source of your challenges so that you can take steps to improve your money management efforts.

Debt Relief and Management Options

While improved budgeting tips and guidance can be helpful, some consumers already have a considerable amount of debt that they are responsible for. Through credit counseling, you may benefit when you learn more about different debt relief and debt management options available to you from companies like Credit Guard. When you work with a counseling service for debt relief, your counselor will work with your creditors to negotiate a lower interest rate and better loan terms. Whether you are barely able to make ends meet right now or are already starting to slip behind on your payments due to the financial burden, you do want to consider how you can benefit from improved financing terms on your unsecured credit accounts.

When you are struggling with your finances, it is easy to feel as though you have no choices available. The fact is, however, that most consumers will benefit from working with a credit counseling service. The available counselors can provide you with different tools, strategies and tips that you can use to improve your financial management. In addition, these counselors may also be able to negotiate better credit terms with your current lenders.

Online Financial Help Includes Debt Consolidation

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Jun 17th, 2013
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People rarely get into debt instantly—it takes time. You might start charging things on credit while still financially healthy. Making the minimum monthly payments seems relatively painless, but then unexpected expenses come up and things change. Your income might drop due to the poor economy or cutbacks of your hours at work. You might have additions to the family and medical or legal expenses. You try to make up the income shortfall by taking out additional loans. Eventually, you find yourself in trouble. Debt consolidation helps good people who get into debt for various reasons.

Consolidate Credit Card Debt to Reduce Interest

Debt consolidation programs help people pay off their debts without hurting their credit. People who are inexperienced in credit management can easily accumulate staggering debt without understanding exactly how it happened. High interest rates take up most of your monthly payments, and making only minimum payments will barely reduce your balances. You end up paying most of your income just to pay the interest charges.

Debt consolidation counselors can change your financial outlook by making it possible to pay down your balances.

  • Trained consultants contact your creditors and convince them to lower interest rates.
  • Many creditors waive penalties and fees.
  • A counselor will devise a custom debt management plan that consolidates all your unsecured debts into one affordable monthly payment.
  • Your balances begin to drop rapidly, which reduces monthly interest charges so that more of your payment goes toward decreasing your balances.
  • Expert financial and credit counseling helps you plan a realistic budget that you can follow.

Debt Could Aggravate Many Social Problems

Worries about debt can cause family fights, social problems and tension between couples. Getting deferments or taking out consolidation loans usually makes the problems worse. Penalties, fees, higher interest rates and drops in your credit rating could make it harder to pay your bills, get a home mortgage, get promoted at work or find a new job.

Debt Stress Causes Physical and Emotional Illness

The Associated Press conducted a survey on debt and its effect on stress and found that more than 51 percent of people suffering from large-debt stress experienced muscular tension, physical illnesses and psychological problems. Getting out of debt not only reduces your expenses but also promotes better physical and emotional health.

Debt counseling helps you get control of your finances by helping you learn where you spend your money and find simple ways to cut spending. Debt consolidation programs lower the amount that you spend on interest each month, so you have more money for normal living expenses.

Debt Consolidation: Best Strategy for Reducing Credit Card Debt

Debt can cause social, financial and emotional problems or convince reliable people to consider bankruptcy, divorces or separations from their families. Debt consolidation offers a practical, legal and ethical way to handle your debt.

Credit Card Debt Relief with the Help of a Debt Consolidator

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Jun 11th, 2013
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credit card debt relief can helpYour credit card payments are too high, and your creditors are constantly calling. You might think that the only solution is to file for bankruptcy, but there is one other option that can offer you the credit card debt help that you are seeking. Debt consolidation just might be the solution that you need right now.

What Is the Purpose of Debt Consolidation?

As it is now, you may have more than one credit card account that has a very high balance. If you are also paying high interest rates, a significant amount of interest is being added to your debts every month, and this is making it extremely difficult for you to reduce the balances. If you were to continue at this rate, it would take nearly 30 years to pay your debts down to zero.

Credit Guard credit card debt relief may be able to eliminate your debts in about five years. Your debt consolidator will take care of the tough negotiating work for you by contacting every one of your creditors. You will not have to speak with anyone from your creditors’ offices unless you wish to do so.

What Does a Debt Consolidator Do?

Because your high interest rates are creating enormous difficulties for you, they will need to be lowered. To this purpose, your debt consolidator will negotiate with your creditors to reduce your interest rates. By just agreeing to lower your interest rates, your monthly payments will drop, but your debt consolidator will take things even further.

A debt consolidator can also negotiate with your creditors to have late fees and penalties waived. These fees and penalties were unavoidable because you were having so much trouble paying all of your debts at once, and they only increased an already unaffordable balance. By removing these fees and penalties, your total balance will be lower, and less interest will apply.

What Happens After the Negotiations?

Once your debt consolidator has obtained an agreement from your creditors for lower monthly payments, your credit card debts will be consolidated. This means that you will only make one monthly payment to your debt consolidator who will pay each of your creditors the agreed upon amount. The advantage to you is that your new monthly payment will be much lower than the amount you are currently paying.

Once you have received credit card debt relief from a debt consolidator, you will no longer receive calls from collection agencies. Furthermore, you will have more money in your pocket each month to save for a rainy day. However, you may be experiencing financial difficulties because you didn’t learn how to effectively manage your money.

Money Management Help

You don’t have to feel embarrassed if your strength isn’t in money management because this is a problem that many Americans have. This is an area where your debt consolidator can help you. Debt consolidators offer their clients a financial education in areas such as setting up a personal budget and money management.

In Debt? Avoid These Loans!

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May 23rd, 2013
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When we’re behind in debt payments and we need cash quickly, it’s easy to feel overwhelmed, stressed and panicked, ready to jump at just about any opportunity to score some cash to help eliminate those feelings. That’s the time when we’re most likely to make really poor financial decisions that can have even more serious repercussions. That’s the time to remember a couple of sayings: There’s no such thing as a free lunch, and if it sounds too good to be true, it probably is. Two examples of these wise adages are payday loans and installment loans.

 

Payday Loans

 

Available in 37 states – they’re illegal or impractical under state laws in the other 13 – payday loans are short-term loans that are written against an outstanding paycheck. To qualify, the person taking the loan pays a lender fee and writes a postdated check that the lender holds until the paycheck is issued a week or two later. Once the paycheck is issued, the person taking the loan gives the check to the lender to be cashed, so the loan can be repaid; if the check is not given to the lender, the lender will cash the postdated check.

 

But, what happens if you can’t pay the loan back when your paycheck is issued? Things can get expensive pretty quickly. Usually, the loan will roll over to the next paycheck. You’ll have to pay another fee, which may not sound like much, but consider this: A $20 finance charge on a $100 balance translates to an interest rate of a whopping 521 percent; a $15 fee per $100 borrowed is equal to an annual interest rate of about 400 percent. Most loan fees fall between 390-percent and 780-percent annual interest rates. Consumer protection agencies define payday loans as being predatory because they say they rely on charging exorbitant rates to repeat customers in order to stay in business.

 

Installment Loans

 

Installment loans are similar to payday loans in several ways – most significantly in the exorbitant fees they charge. The primary difference is that while payday loans are short-term loans that usually run on a two-week rollover schedule, installment loans typically have longer periods – usually several months to a few years.

 

Like payday lenders, installment lenders encourage their customers to roll over their outstanding balances over and over again and charge interest rates well in excess of 200 percent. Installment loans are currently available in fewer states than payday loans, but lenders have found ways around some of the restrictive laws that exist in states that allow these loans. For instance, when states have cracked down on the interest rates these lenders can charge, the lenders have come back with other fees for unnecessary services touted as essential in order to continue to draw as much cash as possible from their customers. In addition, lenders operating from Native American reservations are not bound by state laws but only by the laws the individual nations set forth.

 

Both payday and installment loans target low-income, cash-strapped individuals and aim to keep them in a cycle of debt. They also use enticing ads to draw uninformed consumers into their programs.

 

While quick cash may seem like an easy answer, making a plan to pay it off is the only way to get out from under the debts you owe. Debt consolidation companies and credit counseling services at http://www.creditguard.org/credit-counseling/ exist to help consumers make smart decisions about their debts. Working with the lenders you owe, debt counselors will help set up a simpler repayment plan that slashes interest rates and cuts back on the life of the loan as well as provide clients with information to help them make smart financial decisions. Finances, like other areas of life, require thought and time to understand. Make the decision today to avoid installment and payday loans and develop a thoughtful plan of action to pay your debts the smart way.

How To Pursue Credit Card Debt Relief

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Apr 18th, 2013
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in pursuit of debt help

Do you owe more on your credit cards than you can afford to pay each month? If so, you should consider your credit card debt relief options. Although you may feel like there is nothing that you can do to get out of debt, you have many choices to help ease your debt burden.

 

Consolidating Your Debt Is a Good Option

 

A debt consolidation service can help you consolidate all of your credit card payments into one monthly payment. An additional benefit to consolidating your debt is that you will pay a lower interest rate on your debt. Therefore, you will make one payment each month that is significantly lower than what you are paying currently. After a few payments, you will notice that your debt balance is starting to shrink while your credit score begins to rise.

 

Get the Creditors Off Of Your Back

 

Part of getting credit card debt relief is putting an end to creditor phone calls and letters. It is a lot easier to focus on paying down your debt when you don’t have to screen your calls or avoiding going to the mail box each day because you don’t want to talk to creditors. When you use a debt consolidation service, your creditors are required to stop contacting you regarding your debt.

 

Do Not Seek Out Debt Consolidation Loans

 

You never want to take out a loan to consolidate your credit card debt. This is because your payments will spread out over a longer period of time. When you take longer to pay, you will be paying more interest over the life of the consolidation loan. In other words, the lender wins and you lose on the deal.

 

Credit card debt does not have to keep you down. Instead of making the minimum monthly payment each month, get the help you need to finally get out of debt. There are people who will work with you to lower your monthly payments and get your creditors off of your back.

How Credit Counseling Helps In Raising Families

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Apr 11th, 2013
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Raising a family has become incredibly expensive over the years.   In recent times, the cost of raising a child rose to new heights.  Raising a child now is more expensive than ever.  It costs well over $200,000 to raise a child in the United States.  A family could once get by comfortably on much less.

 

What Is the Cost of Rearing a Child?

 

The average middle-class family can expect to spend $235,000 to raise a child, the equivalent of approximately $17,000 per year.  The most expensive years for raising a child are those leading up to age 12.  The research concentrated on the expenses incurred before the child reaches 18 and goes off to college.  When accounting for inflation, that amount was $191,720 in 1960.  The Agriculture Department’s Center for Nutrition Policy reports that the largest expense associated with raising a family is housing; thirty percent of the costs for raising a child can be tied to housing costs.  Families who send their children to college can also expect to spend over $10,000 per year for tuition.  That’s a lot of potential debt.

 

How Can Credit Counseling Help One Achieve Their Savings Goals? 

 

Due to the costs associated with raising a child, the average family could have trouble reaching their savings goals.  Unexpected medical expenses, child care costs, clothing and food can all quickly add up for the growing family.  While there isn’t much the average person can do about inflation or the cost of living, the person can implement a sound savings strategy.  Working with a credit counseling agency can help a family accomplish their savings goals.  The credit counseling agency will work closely with the family to help create a family budget.  If there is any debt, the agency will also help a person learn more about the many consolidation opportunities available that can save families money and reduce debt.

 

Although raising a family is more costly than it’s ever been, a person can prepare by saving and receiving personal finance coaching.  Working on personal finances before the child is born or while the child is young will prepare the family to meet those costs.

How Can the Best Debt Consolidation Help You This Year?

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Mar 29th, 2013
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taxes and debt consolidation

This can be a frustrating time of year. You have received your tax refund and are happily planning all the ways you will spend it. Last year, you paid off all of your credit cards with your return and plan on having fun this year. Then you start looking through your recent bills and realize something startling. Your cards still have balances! What happened?

 

The truth is, even the best budgeters and most zealous savers can end up in a financial pickle. Swiping the good old plastic is too easy. Sometimes, as during the recession, it even becomes a necessity. If you are wondering what solution is, best debt consolidation should be high on your list.

 

Making only one minimum monthly payment each month may be the only reason you need to consolidate. Other benefits of consolidating your debts might include:

 

  • No more collection calls or letters
  • Waived fees
  • Reduced interest rates

 

If you need help getting your finances in order, the debt counselor who helped you consolidate your loans can help you in many ways. Though many people don’t realize it, a debt counselor may offer the following help:

 

  • Teach you money management skills
  • Give you obligation-free consultation
  • Provide emotional support during the consolidation process

 

Many debt counselors have been in your shoes. They have faced a mountain of credit card debt and tackled it head on. They have learned how to better manage their money and are now in a position to help others.

 

Sometimes, debt can feel shameful. You may start feeling like if only you had worked harder or saved more, you wouldn’t be in this position. Don’t go down that road. Millions of Americans end up in debt due to unforeseen circumstances. Others have good intentions but have never been given the correct tools to properly manage their money.

 

Regardless of how savvy you are financially, debt can happen. Don’t let it get you down. The best debt consolidation advice will come from a debt counselor you trust. Let them do their job and get you back on track.

Credit Card Debt is Not So Heavy

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Mar 15th, 2013
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credit card debt is not so heavy

Credit Card Debt: The Elephant in the Room

Credit cards are an integral part of the economy. Never before have so many people had easy access to so much credit. This has set about a whole new world of financing. No longer are you entirely reliant on bank loans or local loan stores for the ability to buy something. Credit cards are also a safety net for their users allowing a blanket if their job lays them off, or if they have automotive problems have their car repaired and paid for in a timely manner. Having credit, however, is often times a mixed blessing. So many people are up to their necks thanks to the charges they accrued with credit cards.

 

Unfortunately, for all the positives that credit cards represent sometimes people are in situations where they cannot meet the monthly payment that came with the charge. Life often has a bad way of getting in the way of paying off credit card debt.

 

Credit cards often have steep fees and interest associated with their usage,as they are unsecured loans. They are somewhat risky and can be a catalyst for a vicious cycle that is hard to stop. If you’re late or have forgotten to make a payment, you would be subject to hard-to-pay interest rates that bring you down. They end up being the very cause of your financial downfall.

 

Often times the best thing you need to do is talk to a credit counselor and assess your situation. More often than not it just takes a little guidance to get on the financial freedom bandwagon. Considering the debt help programs available, getting out of debt isn’t impossible at all. Usually it will consist of learning how to better manage your finances and expenses and learning how to budget your schedule to maximize the payment of your debts.

 

Often time you may be able pay off your loans far in advanced of what your original payment schedule initially assessed. Healthy budgeting and a little bit of perseverance is all it takes to be credit card debt free.

How Debt Consolidation Programs Can Give You a Fresh Start

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Feb 19th, 2013
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emergencies happen debt consolidation programs can help

No one can get it right all of the time.  Life happens.  Sometimes medical expenses and bills can set you behind.  A divorce can make it hard for you to get back on your feet and reestablish credit.  A change in employment status or a layoff can put any responsible person behind on their monthly obligations.  When the interest continues to accrue, and the bills seem to become unmanageable, it is time to begin looking at debt consolidation programs.

 

What do Debt Consolidation Programs Have to Offer?

 

They bundle all of your monthly bills and debts into one account.  Instead of paying each creditor individually each month, you only have to make one monthly payment.  A portion of each payment made is used to pay your creditors.  As a result of this service, you are able to pay back your debts much quicker, improve your credit, eliminate debt, and avoid filing bankruptcy.  If you could benefit from lower monthly payments, interest rates or late fees, you can explore the option of consolidating your debt.

 

Here is What Debt Consolidation Can do for You:

 

  • Take years off of your repayment schedule for your debts
  • Help you get to a better place financially
  • Reduce communications from creditors
  • Give you counseling to help you re-establish your credit
  • Negotiate lower rates, lowering your overall debt requirements

 

How Does it Work?

 

If making arrangements on your own, you would have to negotiate with each creditor individually.  With debt consolidation services, you don’t have to worry about any of that.  Your consolidator will negotiate the terms with each creditor for you.  We create the arrangements, handle all of the calls, and finalize any account details. Once the account details are finalized, a monthly payment is collected from you.  You determine the amount that fits within your budget, and a consolidator will make it work.

 

Debt is stressful, and it only takes one life-changing event to land in a precarious financial situation.  Credit guard debt consolidation programs give you the support and tools to get you back on track to financial freedom.  No financial scenario is hopeless.  they’ve helped thousands of good people like you restore their good name and rebuild their credit.

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