Credit Counseling Services for Your Future

Consumer credit counseling can give you the opportunity to get your future back on track. In many cases, a sound financial foundation is the only way we can take the next step in our future plans. Whether we want to change career paths, plan to go to college or start a family, getting our finances in order is one of the most important ways to prepare.

If you have issues with any kind of debt, credit counseling can help. A counselor can give you advice on how to pay down your credit cards, personal loans, student loans and store lines of credit more quickly while not sacrificing any other necessary payments. A counselor may also be able to provide unique, personalized education about how to manage your own finances with your household income, monthly expenses and debts.

You can learn how to make a budget and stick to it with useful and practical tips for saving money. Some of the suggestions a counselor can provide include government assistance programs, savings strategies, frugality advice and introduction to investment strategy. Money management doesn’t have to be difficult if you have a credit counseling service like Creditguard on your side.

A consumer credit counselor can also advise you on steps you can take to pay down your credit card debt as soon as possible. One such step is known as debt consolidation, and many credit counseling professionals can give you advice that you need to see if consolidation is the right choice for you.

What Debt Consolidation Is and How It Works

Consolidation is rolling all of your debts up into one payment and committing to make that single payment every month. Right off the bat, it’s useful in that you don’t have to worry about forgetting a particular store credit account or personal loan if you have several or more debt payments each month.

Not only does it make debt servicing more convenient, but debt consolidation also helps you lower your interest rates by a significant amount, leading to thousands of dollars in savings over the life of a loan. Consolidation providers do this by negotiating with creditors on your behalf and passing the savings on to you. Your monthly payments may be the same as they were before, but clients report paying off their debt as much as six times faster. Instead of 30 years of minimum payments, they were done in five years or less.

If you want to pay off your debts quickly and start your future right now, consider consumer credit counseling today!

Credit Management: Ten Tips to Get out of Debt

get out of debtMany families use their financial problems to relearn how to live more frugally, that they can spend less but still get full value from their monthly income. Student loan debt and unsecured loans are two of the main reasons why people fall into financial difficulties. Paying the principal and interest takes a big chunk out of the money you earn each month, so naturally, getting out of debt is one of the most important steps you can take to save money. If you can’t pay down your creditors, then you can seek help from smart credit management to reduce interest rates and cut your monthly payments.

Ten Ways to Save Money Each Month

You can save money while living comfortably by using the following strategies:

  1. Waste less money on food. Most families throw away food because they prepare or buy too much. Produce and meats go bad before they’re eaten, and families typically throw out food after each meal. Buy less food, serve smaller portions, and use up older foods first to prevent spoilage.
  2. Cook at home more often. People spend lots of money for convenience foods and restaurant dining, but you can save money by learning to cook nutritious food at home.
  3. Share resources with family. You might share a second car, move in with relatives, or share vacation resources such as cabins, boats and equipment.
  4. Use online tools to save money. You can find coupons to save money on many kinds of products.
  5. Sign up for automatic savings. You can save money painlessly if the money is deducted from your paycheck each month.
  6. Plan your expenses. Families often spend without discussing the best ways to use their money. If you discuss expenses and follow a budget, it becomes harder to justify frivolous purchases.
  7. Find a non-profit debt consolidation program. These companies can reduce your interest charges and monthly payments while keeping your credit scores healthy. Get out of debt to improve your credit and lowers insurance premiums and interest rates.
  8. Protect your information and privacy. Identity theft could cost lots of money, but protecting your privacy also has other financial benefits. Companies use information about you to make offers that seem attractive but really just keep you in debt.
  9. Plan for the future. People who save for family goals or retirement are willing to make sacrifices for their futures.
  10. Pay more than the minimum on loans. This strategy steadily reduces your interest charges each month.

Getting debt relief is the best way to increase your monthly income, and debt consolidation is one of the best ways to get that relief. And when you start using better credit management techniques, you’ll see tremendous savings and financial benefits.

Credit Management: Become Credit Card Debt Free

A consumer’s credit score is a very important number. If this number is very low, the consumer has difficulties being approved for an auto loan or for a mortgage loan that has a low interest rate. A high interest rate would mean that a large amount of interest will be added to the monthly payment, and this makes the loan more costly than it would ordinarily be.

The Importance of Eliminating Credit Card Debt

One way to ensure that your credit score is as high as it can possibly be is to eliminate your credit card debt with CreditGuard of America. The amount of outstanding debt you are carrying accounts for 30 percent of your credit score. If you eliminate this debt, you have a good chance of pushing your credit score towards the “good” or “excellent” range.

Eliminating Debt through Debt Consolidation

Your debts may seem insurmountable right now, but credit card debt consolidation will help you reduce these debts to zero. A debt consolidator isn’t going to ask your creditors to lower your balances. What debt consolidators do is ask your creditors to lower your interest rates, and lower interest rates will mean that your monthly payments will be lower. It’s also possible that the penalties and fees that have been added to your balances can be removed.

Once you have eliminated your debts with credit card debt consolidation, you will need to know how you can keep your credit score in good standing, and this is something you can learn from your debt consolidator. For example, you will learn how important it is to pay your bills on time.

Reporting to Equifax, Experian and TransUnion

You have a file with the three major credit bureaus, and your creditors can report late payments to them. When this happens, the credit bureaus will re-calculate your score to a lower level. On the other hand, if you were to pay all of your bills on time, your creditors would report this information as well, and paying your bills on time makes your credit scores go up.

Improving Your Credit Score

Credit management services like Credit Guard also give you ways in which to improve your credit score while you are eliminating your debts. Even though your credit reports may have some accurate missteps listed on them, there can also be errors, and you can have these errors corrected. You will need to follow a particular protocol to have negative entries removed that are lowering your score, but you will learn exactly what you need to do from your debt counselor.

You will also be advised by your counselor to start paying every bill on time. Paying your bills before the due date is incredibly important because your credit score is based in large part on your payment history. When you are making payments on your old debts, make sure that you are never late. Then, your credit score can steadily rise as you are working to climb out of credit card debt.

Should You Save Money for Emergencies or Pay More on Your Debt?

People often live paycheck-to-paycheck, and credit counseling experts recommend that you pay more than minimum payments, save for emergencies and put aside money for retirement. You might wonder how these things are possible when you can barely make the minimum monthly payments with your current income. One solution is finding a debt consolidation program, and the other involves learning to spend your money wisely.

create an emergency fund

Get Spending Under Control

People spend money on frivolous goods and items that they don’t need. One advantage of debt consolidation programs is that they provide credit counseling services to help you save money and reduce spending. Paying off your high-interest unsecured debts requires paying more than minimum payments. Once you get started paying more each month, your interest charges will shrink, which frees more money for other purposes.

Some experts recommend paying off your debts first because you could use your credit cards to cover emergencies. Other counselors feel that this plan could have negative results by encouraging you to rely on credit to solve your financial problems. These financial advisers feel that saving money has a good psychological effect. Both plans make valid points, so you should choose the plan that works best for you.

  1. Some people find that saving money becomes addictive, so those people might benefit by choosing the saving option.
  2. Both sides agree that you should defer saving for retirement and other goals until you have an emergency fund to cover you for six months.
  3. You should save at least $1,000 for simple emergencies, and you can divide the rest of your monthly surplus between paying more on your debts and adding to your emergency fund.
  4. If changing your spending habits doesn’t provide enough money to pay more on your debts, consider debt consolidation.

Debt Consolidation Programs Help You Retire Credit Card Debt

The trained counselors with Credit Guard non profit debt consolidation can help you pay off your debts by negotiating with your creditors to reduce your interest rates. Your custom debt management plan will consolidate your obligations in one monthly payment that is usually lower than what you are now paying, but your balances drop faster because your interest rates are lower. Many creditors will waive penalties and fees so that you can pay off your debts even faster.

  • You can use your monthly savings to create an emergency fund.
  • After you get a little breathing room, you can save for retirement, a family vacation, college fund or other family goal.
  • Debt consolidation protects your credit rating so that you can buy a home, get lower interest rates, receive discounts on insurance and enjoy the other benefits of having a solid financial reputation.
  • The credit counseling services that debt consolidation counselors provide can help you meet financial goals and learn to manage your money.

Debt consolidation can solve the problem of trying to choose between saving for an emergency fund and paying down your debts. Contact a counselor today to see if you qualify.

How to Build Momentum and Get Out of Debt

If you are currently in debt then you probably already understand the stress associated with owing money. It isn’t nice and can sometimes cause you to feel physical tension as well. As a result, it is something that you should quickly take care of so that you can start enjoying your life again. So, if you would like to get out of debt and re-claim your financial future then take a look at some of the tips, techniques, and strategies that we have below.

The “Snowball” Effect

Basically, this is principle that states that if you continue to borrow money without paying it back, you are going to create a “snowball” effect in your financial life. Basically, you are going to end up owing so much money that it’s going to appear and feel uncontrollable. This is why you need to prevent your finances from spiraling out of control as soon as you can. Stop applying for new credit cards and stop taking out new lines of credit. Pay off what you owe now so that you can slowly but surely make it out of the rut that you are in.

Building Momentum

As you begin to do this, you’ll build more and more momentum. In order to get out of debt, you’ll need to remain disciplined and positive throughout the process. Otherwise, you risk falling back into your old ways and taking on more debt that you cannot pay back. In order to build momentum, you should consider starting small.

Take a small debt that you owe and pay it back in full if possible. Right away you’ll feel a whole lot better and even be motivated to further pay off your other debts. This builds a lot of mental re-assurance and will even prevent annoying creditors from calling you on a frequent basis

Final Considerations

You should attach your largest debts first and slowly work your way towards the smaller ones. After you’ve eliminated a major debt from your life, the smaller ones are going to feel very insignificant. While it may not be easy to get out of debt, it is certainly possible, especially if you are following the tips and strategies presented in this article. Also make sure that you aren’t doing this alone. There are several agencies and companies that will provide you with these services for no extra charge.