| November 1, 2011

President Obama Unveils Student Loan Debt Plan That Will Help Millions

Consolidated Credit Urges People to Use This Opportunity to Jump Start Their Personal Finances

President Obama revealed a new plan that would help millions of young people struggling to make payments towards their student loan debt. The plan will speed up legislation passed by Congress last year and reduce the maximum required monthly payment on student loans to 10 percent of discretionary annual income, versus 15 percent originally required by law. In addition, student loan debt will be forgiven after 20 years instead of 25, for those making consistent and on time payments.

Consolidated Credit is urging people with student loans to use this opportunity as a means to jump start their financial situation. Start saving that 5 percent in a separate savings account or pay-off credit card debt that may have sky-rocket interest rates. This new measure may enable millions of Americans to get a hold of their personal finances and help them to get out the financial mess that many of them are in.

Consolidated Credit experts advise people to consider the following strategies to make the most of the 5 percent savings:

  1. Invest – Start investing 5 percent of your monthly income in your 401K or a pension.
  2. Pay-off high interest credit card debt first – For an individual who has a $1,000 credit card balance with a 14 percent interest rate who pays the minimum amount due each month ($22.00), it would take over 64 months to pay off and the creditor will make over $600.00 in interest. That’s some pretty good motivation to persuade people to pay off their high interest credit card debt first. Student loan debt offers low interest rates, typically around 4 to 6.5 percent and people need to know how to prioritize their debts.
  3. Improve your credit score – Millions of Americans have low credit scores due to charged-off debts. Consolidated Credit advises consumers to use that extra 5 percent of annual discretionary income to help pay-off or settle any charged-off debts. This will significantly improve their credit score and allow them to pay less interest in the future when they need to purchase a home or car.
  4. Donate the 5 percent to a local homeless or animal shelter – Although millions of Americans are struggling to pay their student loan debt payments each month, even more individuals are struggling to keep a roof over their head or feed their families. By donating to a local non-profit shelter, you will be helping the local community and overall economy.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
Click here to learn more.

Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

You can save!

With this amount of debt, you'd pay around $xx.xx on a DMP.

FREE Debt Consultation