Every successful attempt to get out of debt starts with an acknowledgement of financial reality. It’s crucial that you examine your debt situation from an unbiased perspective and resolve to do something about it. These five criteria can help you decide whether you need debt management help.
Spending within your means is a key aspect of financial responsibility. If your expenses are rising faster than your income, trim your non-essential purchases and look for ways to raise additional cash.
As your credit card balances increase, your monthly minimum payments will rise as well. Since missing a monthly payment can have serious ramifications for your credit score and may attract the attention of collections agencies, it’s important to keep a handle on these expenses.
If the balances on your credit cards or personal credit lines continue to grow unchecked, you’ll eventually near your credit limit. Resist the temptation to apply for a limit increase. Instead, devote a larger share of your monthly budget to paying down your debts. Nearing or exceeding your credit limits may have a negative impact on your credit rating.
Lenders are generally wary of overextended borrowers. If you can’t secure a much-needed loan or find yourself paying an exorbitant interest rate on your new credit card, it’s probably because lenders see you as a risky bet.
Keep close tabs on your credit score by obtaining a free credit report at regular intervals. If your credit score appears to be declining over time, you might be in need of debt management help.
If you’ve experienced any of these problems, you may wish to seek help from a debt management company like CreditGuard. These organizations employ trained debt specialists who can negotiate with your creditors and lessen the pressing financial burdens that you experience on a daily basis. They’re capable of reducing your interest rates, mitigating the impact of late fees and providing long-lasting financial guidance that can prevent future run-ins with debt.Read More
More and more families are increasingly turning to debt consolidation when asking themselves how to get out of debt. Consolidation allows you to pay off debts quickly without being subjected to credit score hits or new loans.
How it Works
Debt consolidation is based on the principle that credit card companies are willing to charge reputable consolidation agencies less interest than they are to the average consumer. When you set up a debt management plan with the consolidation company, they will negotiate on your behalf with the lender, who will give your account a lower rate as long as you keep paying through the consolidation provider. You reap the benefits of this lower rate as well as waived fees. This is what your small monthly payment to the debt consolidation company pays for.
The savings that result from the lowered interest rates vary depending on your loan provider, amount of debt and other financial details. However, some have saved thousands of dollars by using consolidation to get out of debt. They pay off their debts decades sooner, which enables them to look toward large future purchases or setting up substantial savings or retirement plans.
Credit Score Benefits
One of the main reasons people choose to go with debt consolidation is that it helps them get a boost to their credit score. First off, because it isn’t a new loan, there won’t be a hit to the score right off the bat. Second, because consolidation automatically pays all your loans regularly each month, which regularly will show up in your credit score and will help to establish a strong credit history. Finally, because debt consolidation is a way to pay down your debts more quickly, your debt-to-credit ratio will improve – and this ratio plays a huge role in your credit score.
Where to Begin
If you’re looking for ways to get out of debt, consolidation may be the way to go. Debt consolidation providers like Credit Guard help you with your credit management so that you can get your life back together.Read More
A debt management plan transforms what feels like a vague worry called your outstanding debt into a concrete, actionable set of goals that you can achieve on a timeline to help you manage and ultimately get out of debt. It is ideal for individuals and families who are sick of owing money and want a real solution for debt relief.
The first step in getting a debt management plan is finding a credit counseling service and asking for help. Once you’ve found a counselor that you like, sit down and get your budget in order. This will involve sharing income information as well as expenses, debts and other financial concerns. Your counselor will work with you to put together a short-term, medium-term and long-term plan for getting your finances and debt back on track.
Depending on the scope and scale of your debt, your counselor may recommend that you begin debt consolidation. According to companies like CreditGuard of America, this may accelerate your debt management plan and help you pay off your debts much sooner than if you simply continued paying the minimum on your credit cards. This is due to a major benefit to debt consolidation, which is lowered interest rates.
Less interest translates into more savings for you. Each time you make a monthly payment, more of your money will go toward the principal loan amount rather than the interest, which will allow you to pay off your loans and get relief that much faster.
Not only will debt consolidation have a short-term impact on your debts, but it will also improve your debt management plan in the long-term as well. Your credit rating will go up because of the regular payments and improved debt-to-credit ratio. Once you have a higher credit rating, you may become eligible for major purchases such as home loans or student loans. Owning a home and going to college can improve your or your child’s future financial success, which makes a good cornerstone of any financial plan of action.
All you have to do is find a credit counseling service and ask for help putting a debt management plan together. It all begins with you, so why not reach out today? You’ll be glad you did.Read More
Wishing you knew how to get out of debt? Hoping that you might have the chance someday to take zeroes off your credit card statements? Getting out of debt is a dream held by many Americans, but it doesn’t have to just be a dream. Thousands of people across the country are alleviating their debt burdens by saying yes to a process known as debt consolidation.
Debt consolidation is a credit management service that takes all of the unsecured loans you have – student loans, credit cards, personal loans and store credit – and wraps them up into a single payment. That payment will have a lower interest rate and waived fees as a result of negotiations with the creditors.
While you may try to negotiate with creditors on your own, you may not be able to get as good savings or lowered interest rates. A credit management company like this one can help you get out of debt because they have done hundreds of thousands of dollars of business with a particular creditor and will have more clout than a single account holder.
The interest rate savings from these negotiations can save you thousands of dollars over the life of your loans.
You can save money and shorten the time it takes to get out of debt. While minimum payments may take decades to pay off your loans, you may be able to pay off your loans six times faster when you use debt consolidation.
Most people know that maintaining a good credit score is the key to financial success. When it comes to getting out of credit card debt with CreditGuard of America, they will make sure that your solution doesn’t damage your credit score. Be very wary of programs that require you to take out another loan, even if it is a low-interest loan. This could reduce your credit score and cause you more overall harm.
Debt consolidation continues your payments as normal, albeit under the auspices of a different payer. By ensuring on-time payments every month, debt consolidation actually increases your credit score. By getting you out of debt more quickly, it will help your score go up that much faster.
If you’re seeking a way to get out and stay out of debt, consolidation may be the first step. Give a consolidation service a call today and see if it’s for you.Read More
Consumer debt is one of the most common burdens Americans struggle with. While some amount of debt is acceptable, too many people work all week just for the privilege of handing the majority of their paychecks over to lenders. If you are facing substantial debts or want to avoid financial troubles in the future, here are five things you need to know.
Depending on which source you use, the average American carries more than $15,000 in credit card debt. Because the average interest rate on this kind of debt is often north of 10 percent, it can be very difficult to pay it down on your own. Debt consolidation companies like Credit Guard can help when credit card debt becomes too much to manage.
For as many pitfalls as borrowing can present, it’s important to understand that not all debt is bad. If you need to borrow money to buy a car, mortgage a house or pay for your education, you’re doing something that is going to improve the quality of your life. Interest rates on these loans are often much more favorable than those found in the credit card realm.
Just as certain loans are acceptable, certain forms of debt should be avoided. It’s easy to use a credit card, for instance, to pay for disposable things such as eating out at restaurants or going on vacation. But unless you’re sure you can pay off your balance in a month or two, you could wind up drowning in interest payments. Get in the habit of saving money for these types of purchases ahead of time and you’ll pay much less.
If you want to rein in your spending, you need a budget. Without knowing exactly how much you have to spend and how much you have spent already, avoiding debt and managing your bills will always remain a guessing game.
Many people have success paying down their debts by targeting high interest accounts first. If you must continue making only the minimum payments on most of your loans, do so, but put as much money towards that high interest credit card as you can. When it is paid off, target the next in line and so forth.Read More