With Debt Consolidation, Prioritization is Key

debt consolidation priority

Not everyone is in a position to pay off all of their debts when they enter a financial rough patch.  The person who has lost income may not be in a place to repay all debts on schedule as planned.  It’s not that the person intentionally took on the debt with the intent of not paying it off; it’s just that the decision was made when the personal finance situation was entirely different.  The stressful economy has left many households cash-strapped.  In the new economy, people have had to revisit their debts with prioritization in mind.

Unsecured and secured debts should be prioritized differently.  If the person is unable to pay off all of their debts with their existing budget, one has to treat the unsecured debts differently from the other ones.  The unsecured debts can be temporarily put off because there is no collateral attached to the debt.  Hospital bills and credit card debt can be put off temporarily while one focuses exclusively on catching up on car payments or the mortgage.  It’s always best to look at debt in terms of what assets are at risk if no payments are made.  The problem with not paying on any debt is the impact it can have on one’s credit score.  Both unsecured and secured debts can damage a person’s credit if they go unpaid.

Rather than ignoring some debts while focusing on others, there is another option.  Getting debt consolidation help gets a person back on track.  The person can receive counseling and advice from debt counselors who can structure the debts in a way where no payments are skipped.  All debts can be bundled together in a debt consolidation help program and the person no longer has to worry about the consequences of not paying the debt.  Clients appreciate not having to communicate with each creditor to create a series of different payment arrangements while struggling on a monthly basis to meet commitments made with a limited budget.

If a person has to choose between unsecured and secured debts, the unsecured debts should always come first.  The credit score will be affected in either case if payments lapse.  If working with a debt consolidation help group, the counselor will handle all of the arrangements and oversee the prioritization of the debts.

Modern Credit Consolidation Methods

gas expense managing debtThroughout the nation, people are having problems with debt. These people struggle with everyday expenses such as gas or groceries. Just to get along in their lives, many people turn to credit cards to help pay for these commodities. Often times, unexpected medical or mechanical issues, as well as household repairs require families to use their credit card even more extensively. Unfortunately, as people keep charging more and more of these expenses on their cards, the monthly bills pile up, turning into a hefty fee. Eventually, as bills get larger and larger, the debtor descends into a deep spiral of debt which never seems to end.

In managing debt, many debtors pay only the minimum amount required at a time, often times not by choice. However, in doing this, credit users pay significantly more money than the purchase originally cost, sometimes many times more than the initial price. Also, dealing with separate bills individually can be extremely unorganized, leading to confusion which restricts the debtors’ ability to fend off the debt.

However, there is help for those struggling with credit card debt. Credit consolidation services allow clients to organize their credit card debt into a single, easy to manage monthly payment. These programs asses their clients’ financial situation and formulate a strategy specially suited to the client’s ability to pay. Alongside managing their clients’ current debts, credit consolidators assist their clients in learning how to avoid future debt, teaching them special skills which allow them to recognize, calculate, and eliminate certain risks which might overwhelm them.

No matter how hard it may seem for them swim out of the sea of debt, it is imperative for debtors to know that they are not alone in their struggles. They have access to many organizations that are dedicated to helping clients overcome debt. Credit consolidation is just the first step to managing and eradicating the mountain of debt that so many experience in their lives.

Counselors and Credit Counseling

say goodbye to debt and get debt help with credit counselling

If you are struggling with credit card debt and need assistance, before you go anywhere else you should see a credit counselor. These advisers know the ins and outs of the debt world. They are masters of knowing what is needed to eliminate any credit card debt. Whereas they might endorse certain products or services or be a part of a service themselves, a credit counselor will know what to do to help you pay off your debt. Even if you have negligible credits, and have a reliable steady income, it is still advised that you consult with a credit counselor, even if it is only to learn about laws and regulations or to establish a contingency plan if an emergency happens.

Debt happens to everyone at some point in their life. Maybe you withdrew credit to make a personal purchase, perhaps you lost your job and spent your savings on living expenses, or perhaps you had an un-expected medical bill. Whatever the situation, the help is still there. Credit counselling assesses your income and credit situation to advise you on what your next step needs to be.

Creditors really are not the evil companies people make them out to be. Often creditors provide the assistance that a client needs, if only the person who needs help seeks it. More often than not, debtors accept their fate of debt and trudge through not knowing the resources available to them. The hardest part of becoming debt free is to realize you need help. Often, once the first step is taken the process speeds up quickly.

If you work with credit counseling, creditors will see that you have the willingness to take more responsibility in paying your debt. The results may be surprising, a reduction in interest or the waiving of usage fees. This debt goodwill causes a cycle of proactive debt reduction. Once you start to get a handle on your debt, you will be surprised how things fall into place.

Help for People Seeking Credit Counseling Services

develop financial skills with credit counseling services

Considering the many rules, terms, restrictions, fines, and penalties written into any given credit service, it is a wonder that so many more people aren’t in troubled waters with debt. Contracts are often specifically designed to be confusing, misleading, and filled with bureaucratic fluff that helps creditors  get away with many advantages over their own customers. Many people have no clear idea of what they are getting themselves into when they sign a contract for a credit service or other types of loans.

Unfortunately, there aren’t many things you can do once you’re signed into a loan contract to change what a creditor might be able to do to you if you’re late or miss a payment.  In order to get past these fees your creditor must agree to change the contract, and they often times do no real help for those who ask for it.

Debt consolidators are a service that not only brings together multiple unsecured credit card balances, but they also negotiate for lowered interest or fees for its users from their creditors.  These credit counseling services are the bargaining chip that gives power back to the borrowers. Consolidators have the means to directly advocate for what is best for their client.  Consolidators provide the financial and emotional support needed to be independent of creditors.

Consumer credit counseling services provide informative and helpful financial advisors who teach critical fiscal skills. These skills are important for growing your budget and managing future finances. Budgeting is invaluable for a growing family, or living with certain foreseeable expenses. These skills are a preventative measure in case emergencies come up allowing you to be able to deal with paying these potential debts off before they become an out of control problem.

No longer do you need to cope with debt. Now you can become the master of your own money. Usually consolidators provide a free no-obligation credit consultation to see where you need to go to meet your goals of debt freedom.

Save More Than A Penny – It’s Your Future

With fixed income and rising prices, it can be hard to save.  Regardless of your scenario, saving should be an essential part of your budget – don’t sacrifice your future, especially on things you can do without.  Too often, saving is at the back of the food chain.  Spend on everything you want, and save whatever is left over, right?

This mentality can be dangerous.  There’s always going to be products we convince ourselves that we need.  Perishable items, like food, can be “ninja purchases” – there’s accumulative reminder of all the money you’re spending.  Ninja purchases can destroy saving efforts, because there’s always less left over than you initially thought.

The simple solution?  You don’t have to pay a financial advisor to tell you: make saving a priority.  Sit down and determine how much you’d like to save, and don’t let that money ever hit your wallet.  If you have a consistent flow of income, you can set up automatic transfers easily in most online banking platforms to boost your savings over time (without the need for consistent effort).  If you’d prefer your money out of sight, set up a separate account that isn’t attached to your easy access plastic.

Enough excuses – it’s time to save.  Start by creating a budget – it’s never been easier to aggregate data and establish spending behavior.  Subtract your mandatory expenses from your income, and be sure to keep a percentage of the rest for the future.

Whatever amount you contribute, make sure you are systemic in your savings approach.  Make it part of a routine!  Do whatever helps you to put money away for later – setting up a system you won’t keep to is a waste of energy and effort.  Don’t wait for the next paycheck to contribute to your savings – you never know what can happen in the meantime.

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Seeking Preventive Credit Counseling Services at the Right Time

A person’s credit score can affect nearly every aspect of life.  It can mean the difference between being given a competitive rate on a car loan or being ineligible for financing.  It can mean the difference in being eligible to work in certain companies or positions.  Credit counseling services aren’t just for those with trouble managing their debt.  People who are preparing to enter an important phase in their lives should also consider seeking credit counseling services.

Preparing for a New Home

When the person or young couple is planning to purchase a home, credit counseling may be appropriate.  The couple can work together with a counselor to make sure that their finances are in top shape before approaching a lender for a home.  Many couples rely on credit and debt counseling to prepare their finances for major purchases such as buying a new home.

Graduating from College

graduates might benefit from credit counseling services to help prepare for student loans

A young graduate with a lot of student loan debt may be able to work with a debt counselor to help develop an affordable repayment strategy.  A person may find this necessary to be eligible for certain positions.  The graduate may want to have a strategy in place before entering the workforce.  Debt counseling is often used among recent graduates who want to get their careers off to a good start.

Change in Marital Status

Divorce and separation both can put a person in a vulnerable place financially.  Some people choose to work with counselors to avoid having to file for bankruptcy and cause significant damage to their credit.  Credit counselors help people in these situations arrange their debts in a way where they can comfortably repay them on their new budget.

Purchasing a New Vehicle

Some people find that purchasing a car is really expensive for those who do not have good credit.  Some people plan ahead for these purchases by saving up for an extremely high down payment.  Proactive, prospective clients work on their credit well in advance to make sure that their finances are in order.  Credit counselors work with people to coach them and help them improve their credit scores.

Credit counseling services like this one aren’t just for those who are in trouble.  This service is ideal for people who are entering a new phase or chapter in life, and want to make sure that their finances are in order.  People from all backgrounds in all types of scenarios may benefit from this type of preventive maintenance credit counseling support.

Improve Your Credit Score with Credit and Debt Counseling

low credit score credit and debt counselingIt takes very little for a person’s credit score to suffer.  A change in employment status can make it incredibly hard for a person to make payments on time, and this could affect a person’s credit score.  An unexpected medical expense can be detrimental to a person’s credit and have a snowball impact on the person’s other credit obligations.  If you’re credit has taken a hit recently, you can follow these great tips and improve your credit score.

Monitor your credit regularly.  Many people have no idea just how bad their credit situation has become until a lender or potential employer pulls the credit.  Usually, when a person has his or her credit pulled in either of these scenarios, they are unaware of how bad their credit actually is.  That’s why it is important to pull your credit periodically.  This ensures that there will be no surprises later on down the road.

Automate your monthly payments.  Utility and other required monthly expenses that can be paid with ease should be automated.  Allowing the payments to be automatically deducted from your bank account on a monthly basis is one of the best ways to make consistent, on-time payments each month.

Dispute your credit items.  There are guidelines in place that allow a person to dispute negative items that appear on your credit report.  If you have pulled your credit and noticed some negative items, you can send a letter to the creditors and dispute them.  If the creditor fails to respond in a timely manner to the item in question, it can be removed from your credit history.

Enter the credit and debt counseling company, like CreditGuard.  If you have a debt problem, you can seek credit counseling to help you get out of debt.  The counselor with work you to develop a plan to help you get you back on track.  Once you’ve enrolled in a plan, all of your debts will be consolidated into one account. Debt consolidation is a great way to get your obligations under control and save money in the long run. You will be able to make one convenient payment every month instead of multiple smaller payments to different creditors.

Having good credit makes it possible to get more affordable lending.  Having poor credit can get in the way of career and other educational opportunities.  Monitoring your credit, challenging negative items, automating monthly payments, and entering credit and debt counseling are steps you can take to improve your credit score.