5 Benefits of Credit Counseling
Get the edge you need in your battle against high interest rate credit card debt.
Working to eliminate credit card debt can feel like an uphill battle. High interest rates of 20 percent or more, eat up more than two thirds of every payment . This is particularly true if you pay at or near the minimum required payment. This can make it tough to eliminate your debt, even if you pay diligently every month.
The information below is designed to help you understand how certified credit counseling service provide the edge you need to eliminate debt. If you’re facing challenges and need professional help , call Consolidated Credit today at . You can also complete an online application to request a confidential debt analysis from a certified credit counselor.
Edge No. 1: The right solution for your needs
If you’re overwhelmed by the number of options you have for debt elimination, credit counseling services help you zero in on the right solution. You find a solution that best fits your unique financial situation and goals. You get an unbiased expert opinion on the best option to get out of debt. The counselor looks at the total debt you owe, your credit and budget to determine which option will work in your situation.
This can be invaluable, since many clients often report they went through several different options before reaching out to a credit counseling service for help.
Edge No. 2: Negotiating lower interest rates
For many people the biggest challenge in debt repayment is the amount of interest charges applied. By lowering the interest rate applied to a debt, it makes it easier to pay it off. More of each payment you make goes to eliminating the actual debt.
While it is possible to negotiate lower interest rates on your own, many clients say a credit counseling service was able to negotiate successfully where they had failed on their own.
Edge No. 3: Total monthly payments reduced by 30-50%
During the first credit counseling consultation, the credit counselor determines if you are eligible to enroll in a debt management program. This is a form of assisted debt consolidation. It’s shown to reduce total monthly payments by 30 to 50 percent, on average.
That level of reduction is invaluable when you’re facing financial hardship. You may be juggling bills and prioritizing expenses to stay ahead. A monthly payment reduction gives you the breathing room you need.
Edge No. 4: A clean break from credit dependence
One of the requirements for debt management program enrollment is that all credit cards included are frozen until you complete the program. This may sound limiting, but it most cases clients report it actually frees them of previous credit dependence.
When you enroll , your credit counselor helps you set up a budget that relies solely on the income you earn each month. This allows you to learn how to live a cash-only life that helps you avoid debt. Once your accounts are restored, you can use them strategically instead of abusing them by overspending.
Edge No. 5: Access to free financial resources
A big part of most people’s challenge with achieving and maintaining financial stability comes in not having access to resources and tools that really teach you the tenets of good personal finance. When you work with a credit counseling service, you gain free access to that agency’s wealth of financial resources. This can help you build financial knowledge you may be lacking and develop sound financial strategies that foster success.