An increasing number of young people are getting credit cards. According to Sallie Mae’s 2019 Majoring in Money report in 2019, 57% of undergraduate students owned a credit card. Is this a good thing? Not if they aren’t equipped to manage such a major financial responsibility.
Without understanding the fundamentals of a credit score and how APR works, they could end up making detrimental financial mistakes.
If they’re anything like Lori, they may end up piling up debt because they lack the knowledge needed to successfully manage credit card debt.
When Lori became legal, her parents moved thousands of miles away…
By the age of 21, young people are legally allowed to apply for credit on their own. Before then, they typically need a cosigner or to prove they can afford to pay their bills on their own. When Lori turned 21 and her parents moved away, she started using credit and it didn’t go well.
“In 2001, at the age of 21, my parents moved over 500 miles away and I found myself on my own for the first time. I quickly racked up credit card debt and was only paying the minimum monthly balance.”
15 years and $60,000 later, Lori’s debt was out of control…
Paying the minimum balance on credit cards can seem like a good idea if you don’t understand how APR works. When you only pay the minimum balance, it’s likely you’re only paying the interest while your principal builds up.
“For the next 15 years, I got deeper and deeper into debt and felt out of control and overwhelmed. “
Unfortunately,15 years of minimum payments left Lori thousands in debt.
She gave fear the boot and call Consolidated Credit…
“I was very hesitant to reach out to Consolidated Credit, as I was embarrassed by my debt and not convinced that partnering with them was the answer.”
Many prospective clients worry about how they’ll be perceived if they choose the debt consolidation route. This is a valid feeling, and one Lori had. However, at Consolidated Credit, we have a customer-first focus and make it our goal to make every customer feel respected, safe, and comfortable. Our credit counselors work with each client to find the best solution to your overwhelming debt.
Lori gives the customer service at Consolidated Credit five stars…
The program isn’t as intimidating as it seems, because debt counselors carry you through every step of the way. We want to ensure you’re a part of the process and understand how we’re helping you, so you feel empowered.
“The credit counselor who assisted me immediately made me feel comfortable and walked me through the consolidated debt process seamlessly. By the end of our conversation, I was already feeling better about my future.”
Sometimes when you have a high amount of debt, the best approach is the debt snowball approach. This is when you tackle high-interest credit cards first to lower your overall debt and repayment time.
After several blissful years of debt consolidation, Lori is almost free…
The amazing thing about debt consolidation programs is we educate each client and equip them with the tools needed to make better financial decisions. Without this knowledge, it’s easy to slip right back into debt.
“After four years of partnering with Consolidated Credit, I am elated to say that I am now three months away from being credit card debt FREE!”
Some debt stories do have a happy ending…
Lori has plans to move onto bigger and better financial goals after her last payment. Now that she no longer has looming debt, she has dreams of becoming a homeowner.
“I am excited to finally be able to look for a dream home for my husband, daughter, and me this year now that my debt will be paid in full. Partnering with Consolidated Credit was one of the best decisions I have ever made in my life, and I will forever be grateful for them.”
Ready to start your journey to becoming debt-free? Call us and get a free consultation now.