How Good Debt Management Provides Real Benefits

Jul 31


You might wonder how some people seem to accomplish great things in their lives while you struggle to pay your bills. Good credit management and financial organization can help you meet your goals even when dreams seem impossible. Many good people get stuck in a cycle of spending most of their money on credit card debt and interest payments, but you can pay down your debts and get debt relief.

Divide Your Goals in Logical Steps

You can start getting your finances in shape by breaking down your goals into smaller parts that you can easily achieve. Nothing encourages saving and money management better than reaching smaller goals successfully. Instead of trying to pay off all your credit card debt, make a plan to pay more on the card with the highest interest.

  • High interest rates cause your monthly payments to be higher and keep your balances high.
  • Paying more each month reduces your monthly interest charges so that your balance drops faster.
  • Simple steps to save money might involve canceling unnecessary communications services, bagging your lunch or eating at home more often.
  • Use your savings for debt relief by paying down your unsecured debts. The money you save will go further by reducing your monthly interest charges.

According to programs like the one offered by CreditGuard of America, other small steps you can take for better debt management include putting aside money for emergencies. Experts recommend that you keep two to six months of your income for emergency situations. Having this financial cushion will give you the confidence to cut other expenses and save for long-term family goals.

Pay Off Credit Card Debt

If you have trouble paying off your unsecured debt within a reasonable time, you should consider a debt consolidation program to relieve the pressure of overwhelming monthly bills. These programs offer credit counseling, and counselors can convince your creditors to reduce interest rates, drop fees and penalties and combine your monthly obligations in one affordable monthly payment.

  1. Debt consolidation protects your credit because you pay back the amount you borrowed but get a break on interest and penalties.
  2. A custom debt management plan that is put together by trained credit counselors will include all your monthly expenses and income so that you can pay your bills and living expenses.
  3. Any leftover income you can apply to savings and luxury items. The small step of saving regularly each month will eventually result in a substantial nest egg.
  4. Debt consolidation services have helped thousands of people get out of debt and learn to handle money.

Save for the Future

Having savings put aside for retirement and emergencies can have a positive impact on your life because good credit management will inspire you to make better decisions about spending, career advancement and investing. You will learn to meet your goals so that you can enjoy the better things in life, but getting out of debt is the first step. Debt consolidation services can put you on the path to a more secure financial future.


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A Method for Helping People Reduce Credit Card Debt

Jun 29

reduce your credit card debtAmericans don’t necessarily receive a formal education in credit management. This can often mean that they fall into difficult financial situations after they open their first credit card accounts. For some people, one account leads to several others, and this is when they discover that their credit card debts are too high for them to repay. At this point, debt consolidation is an excellent possible solution to this problem.

Bankruptcy is a last resort and something that people don’t want to consider. If you are considering bankruptcy, you may actually be a candidate for the services of a debt consolidator. If you choose a debt consolidator over bankruptcy, you will keep your credit score from falling, and this benefits you in a variety of ways.

How a Low Credit Score Affects You

A very low credit score can mean that you will not be entitled to receive the lowest interest rates for purchasing a house, for example. Currently, interest rates are on the low side, and it is a great time to buy. However, only applicants with the highest credit scores receive these low rates. Similarly, some auto dealerships are advertising extremely low interest rates. With a low credit score, you will not receive the low rate for a new or used car either.

It may seem unfair, but some organizations discriminate against people with low credit scores when they apply for certain products. For example, insurance companies consider people with low credit scores to be unreliable and irresponsible. For this reason, they charge these applicants higher rates for auto insurance or home insurance. The truth may be that you are not irresponsible. You were forced to take a part-time job and were unable to meet all of your financial obligations, but insurance companies will not necessarily take this into consideration.

The Credit Card Consolidation Solution

You don’t need to file for bankruptcy or suffer with a low credit score, and you can repay your debts in less time than you ever thought possible. By hiring a reputable consolidator like Credit Guard to deal with your credit card debt, your current interest rates will be lower, and this will have the effect of lowering your monthly payments. It’s true that you can call your creditors yourself and ask them to lower your interest rates, but a debt consolidator is experienced in performing this type of work. Debt consolidators know what to ask for, and they know the best ways to obtain an agreement from your creditors.

Your balances may be increasing because your creditors periodically add late fees or penalties. Your consolidator also knows how to have these fees and penalties waived, and this reduces the total amount you owe. Debt consolidators can’t have their clients’ balances reduced, but they can make repaying their debts much more affordable.

You don’t have to take out another loan to repay your bills in full. Contact a debt consolidator today to learn how to eliminate your credit card debt without bankruptcy or a loan.

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7 Tips to Kick Your Debt Repayment into High Gear

May 07

Paying back debt is never as much fun as the spending that got you into debt in the first place, but it’s a task that must be done – and, just think how great it’ll feel to be rid of that monthly burden. The more money you can devote to the repayment of your debt, the faster you’ll be debt free, so use these seven tips to free up some extra cash and turbocharge your repayment plan:

1. Rethink TV. Cable and satellite subscriptions can be expensive, and over a year, the cost can really add up. Dropping your service can add a significant amount to your debt repayment. Today, many shows are offered for free over the Internet, or consider subscribing to a service that streams movies and television shows.

2. Check your insurance coverage. Are you paying more than you should be? Call you agent and see if you’re eligible for any unclaimed discounts, or shop around for a lower-cost provider. You could potentially save hundreds of dollars over the course of a year.

3. Drop the gym membership. Walking is healthy, and it’s easy on the joints; in fact, our bodies were built for it. Getting out in the fresh air on a regular basis can also boost your mood. For strength, invest in some used hand weights from Craigslist or a yard sale.

4. Plan a menu. Gather all those old cookbooks, or surf the Web for recipes that cater to your tastes. Then, take a look at what’s on sale and plan a menu of favorite meals, instead of going out to eat or ordering in. Added bonus: You’ll learn some cooking skills along the way, and you can also make it a point to eat healthier.

5. Create a spending plan. If you don’t know where your money is going, you don’t know where you can afford to save or spend. Start out broadly – rent or mortgage, insurance, utilities – and add to your list throughout the month to see where and when you’re spending. Its work, but it’s the best way to make sure you’re living within your means.  Money management is important!

6. Use cash. Studies have shown that it’s a lot easier to pay with a piece of plastic than it is to hand over hard-earned cash. Take advantage of that bit of human nature, and force yourself to pay only with cash, so you can truly see where your money is being spent.

7. Enroll in a debt consolidation program. These programs help cut your interest rates and roll all your payments into one single monthly amount that’s simple to track. Find a program that offers credit counseling, so you can learn more money management skills to really ramp up your efforts.

Unlike tiny steps that save a few pennies here and there, these tips can yield big savings with minimal effect on your daily life. The key to savings is to make sure that the money you save goes directly to paying back debts and doesn’t get frittered away on something else. Credit management will show you ways to make sure your hard-won savings goes where it’s supposed to go and will give you additional skills to keep your savings on track.

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Credit Counseling Services: Can You Benefit?

May 02

Let’s face it, we live in a world that encourages spending. Credit companies hand out cards like candy, often resulting in disaster for those who haven’t had the advantage of financial education. Unfortunately, few high schools teach classes on credit management alongside algebra and U.S. history. It isn’t until you’ve pushed the limits of your cards that you may wish someone had told you the dangers associated with spending future income. Credit can be a beautiful thing, but many have found that it also packs a ferocious bite. If you’re in a position where you’re unable to make your minimum payments, credit counseling services may be just what you need.

Unsecured Debt

Debt is typically classified in two categories: secured and unsecured. Secured debt refers to loans like the car note, the mortgage and government-backed student loans. Credit counseling services at can help you learn to budget more appropriately for these payments, but they can seldom help you consolidate them. On the other hand, unsecured debt – personal loans, credit cards and medical bills – are perfect for consolidation. Getting help with these bills can also make it a bit easier to get secured debt under control.

Assessing Your Situation

Don’t make the mistake of thinking there’s nothing that credit counseling services can do to help. You may be surprised at how much even a small amount of education can change your situation. Many people have never sat down to make a strict budget and don’t realize that by making only the minimum payments, they could be paying off their credit card debt for the rest of their lives. By meeting with an expert, you can have your financial situation professionally assessed and find ways that you can climb out from under a crushing debt load.

Debt Negotiation

Even if you’ve made attempts at negotiating your payments with your lenders directly, you may have better luck through a professional service. Negotiating payments isn’t about hard luck stories and sympathy; lenders need a reason to budge. Credit counseling services give them that reason. By lowering your interest payments and consolidating several loans into one, you can begin making your payments count. Many individuals have found their situation far less bleak after going through a good program.

Education and Budgeting

While some services provide debt consolidation without accompanying counseling, the best companies provide both. Simply entering into a consolidation program can do wonders for your financial situation, but it doesn’t guarantee an easier ride. Some continue to have difficulties with their payments after entering such a program as they haven’t acquired the skills that will help them stay on top of their obligations. By taking advantage of further credit education, you can ensure that you don’t end up in an unfavorable situation again.

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Credit Consolidation Will Help You Beat Debt

Apr 26

credit can put you on a steep slope

Credit cards are very useful tools, but their use can put you on a very steep slope. Many people or households can use them without incident, and most of the time the debts are kept at a reasonable size to pay off. Unfortunately, life has a bad habit of really messing this system up. If you have one or more debts, you can usually pay them off in a short amount of time. However, it does not take much at all to throw the balancing act off.

People get credit under the assumption that their financial situation is not going to change, but that assumption can be quite wrong sometimes. Any change in your income such as layoffs, sick days, lessening of hours, or pay reduction can wreak havoc on even the best laid plans. If you have any unforeseen expenses like medical bills, automotive repair bills, home repair and maintenance, or even late fees, they may also be a big hindrance in your ability to pay.

If you should find yourself faltering in your finances, then something you should consider is a credit consolidation. A consolidation of your debt does exactly as its name implies; it condenses your credit and unsecured loans debt into a single payment. This service takes your principals and essentially combines them into a single larger principal pool. This is a useful tool for tracking your balances and streamlining the payment process. This doesn’t change how much is owed in principal, but it help take out the confusion of having multiple payments.

Credit consolidation services also help you tackle debt in other ways. They will talk to your creditors for you to seek easier payments if you need it. Consolidators also have staffs of credit and financial advisers on hand to help guide you through the payment process.

It is easy to see how your debt seem insurmountable, but with the help that is available to debt consumers it should seem not so impossible to deal with.

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Clearing Up Credit Card Debt from Identity Theft

Apr 19

credit card debt identity theft

Social media, regular Internet use, phishing scams and smart phone use all place people at risk for identity theft.  For twelve consecutive years, identity theft has been the top reported consumer complaint received by the FTC.  People ages 18-24 take longer than other groups to discover that they have been victimized.  Between the years 2005 to 2010, 64 percent of these identity theft incidents consisted of credit card debt fraud.

How Do I Deal with the Collection Agency and My Identity Theft?

Many of these people discover that they have become a victim too late.  People who don’t monitor their credit profiles are more likely to have their fraudulent account information entered into collections.  Here are some tips a person can follow when dealing with a collections company as a result of identity theft.

  • Contact the agency and explain how you’ve been victimized.
  • Keep track of every point of contact reached throughout this process.
  • Request information on any documentation needed to support the dispute.
  • Make sure that a fraud alert is put in place with one of the credit agencies immediately.
  • Any correspondence mailed to the agency should be sent using certified mail.
  • Try to reach a fraud investigator with the agency.
  • Always file a formal report with the local law enforcement agency.

After Identity Theft

Now that you’ve navigated the ins and outs of identity theft, you can begin to work on cleaning up your credit.  You can consolidate all of your credit card debt into one repayment plan and begin paying your debt off over time.  The credit card debt counselor will help you create a budget and a comfortable repayment schedule that is ideal for your personal financial situation.  You will be able to see the gradual improvement in your credit score as you make progress on your debt.

It is very scary to find yourself in a place where you have been a victim of identity theft.  If you have plans to work on your credit and eliminate debt, you must make sure that all of the loose ends regarding your identity theft situation have been resolved.  Once you’ve done that, you can begin working on lowering your debt and improving your credit score with a debt consolidation agency.

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Can Debt Consolidation Programs Improve Your Credit Score?

Apr 16

The average person may have no idea how the credit score is calculated but fully understands the impact a negative score can have on their ability to borrow and obtain financing at a favorable rate. The credit score contains so many components; it can be a difficult concept to fully grasp.  Some people could benefit from a basic primer on how the FICO score is calculated.

What Does the FICO Credit Score Consist of?

  • Payment history. This accounts for 35 percent of the person’s credit score and is tied to the payment history. The number of times a person is late on a debt or whether or not a person actually pays on the debt are both activities tracked within the payment history portion of a person’s score.  Creditors are looking for commitment and one’s ability to stick to contractual terms.
  • Outstanding debt.  This accounts for 30 percent of the person’s credit score.  How much the person borrows in proportion to how much a person is capable of borrowing should be in a comfortable range.  The balances on all accounts should be low to reflect good borrowing behavior.  The creditors want to know if you can borrow responsibly.
  • Longevity of credit history.  This component factors into 15 percent of the person’s credit history.  How long the credit accounts have been established and how frequently you have used certain accounts both affect this portion of the score.  Creditors want to see that you have a credit “resume;” a good track record with established accounts plays an important role in this area.
  • The type of credit used.  Retail accounts, mortgage loans and credit cards are evaluated in this category.  How many cards and the types of credit you have are factored into this portion of the score.  The total number of credit accounts is all considered in this equation.  Creditors would prefer to see that you are able to manage different types of credit products.
  • New credit taken on.  Striking a balance between a healthy number of credit requests and the moderate, gradual addition of new credit activity is evaluated in this portion of the score.  Creditors want to see that you aren’t aggressively seeking out credit cards.

As a part of debt consolidation programs, a person can receive the personal finance training and support required to raise the credit score.  Debt consolidation programs provide a comprehensive approach to help people pay off debt in a responsible, efficient manner.  A person can learn debt management and credit improvement skills while working toward becoming debt-free.

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Non Profit Credit Counseling Helps Thousands to Pay Debts

Apr 12

credit counselingSo many people are just ill equipped to handle debt. They have an income that struggles to keep them above water, a system of debt that is more designed to perpetuate debt than relieve it, and perhaps some ill fortune that can cut deeply into savings. It seems that often, the poor are destined to stay poor. But this doesn’t have to be the case. We do live in hard economic times, to be sure, but opportunity for improvement is everywhere. For so many people debt and credit relief seems just out of reach, but here’s the good news: help is here.

Quite often this help comes not from a money grant but from people who make it their professional careers to help people like you find debt help. These people are credit counselors. They know the practices, rules, and regulations of the debt world. They make it their job find solutions for you. Typically these counselors are part of an organization and provide non profit credit counseling. Banks, creditors, consolidators, and other financial institutions provide credit counseling as a means to help people become debt free, and consulting with one can never really hurt.

Non profit credit counseling from this site is one easy way to work on debt relief. A counselor will assess your specific financial situation to find exactly what you need to do to find the relief you’re looking for. Counselors teach you how to budget your’ financing, and through this, establish the skills necessary to pay off debt effectively. They may also recommend a debt consolidation service if you have multiple debts.

Many people find debt relief with the help of a non profit credit counselor. With a bit of a jump start and direction, debt problems just don’t seem as vicious as they did when you took care of the debt on your own. All it takes, often, is someone on your side of the debt pit, actively helping you become financially independent of your debts

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