Even if you are not in as much debt as others, you could benefit from credit counseling services. Anyone that uses credit cards can benefit from the services provided by these companies.
Benefits of Credit Counseling Services
There are many benefits to using the services of a credit counselor. Some of the benefits that a counselor can provide are:
- Money management skills
- Help with eliminating debt
- Emotional support during debt reduction
- Eliminating collection calls
- Debt consolidation
Many people confuse debt consolidation with more loans. However, this is not the case. A debt consolidation service thinks and operates on the idea that getting out of debt should not make you first get into more debt.
So what is a consolidation? Your debt counselor works directly with your creditors to lower your monthly interest rate. You then pay them a pre-set amount of money each month. They take your payment and disburse it to your creditors based on the arrangements they have made.
Why Does it Work?
You may think such a simple plan won’t work, yet the reasoning behind debt consolidation is solid and time-tested. What many cardholders don’t realize is that it is usually not the principle of the debt that is hurting them so bad. The high interest rates and other types of fees are what cause your card balance to soar.
A Credit Guard debt consolidation will not reduce the actual principal amount you charged. However, it will lower the interest you are required to pay, and can often get rid of some fees that you were charged as well. You will be very surprised to see at how much your monthly payment drops when your interest rate falls by 5 percent or more.
Who Should Use These Services?
Anyone can use debt consolidation services, even if they are not head over heels in debt. It’s a great way to reduce your interest rate without having to transfer balances or take out another type of loan. If you have any credit card debt at all and are interesting in lowering your monthly payments, you should consider using credit counseling services.
Technology has helped our world in many ways. For instance, millions of Americans have been able to work from home via the Internet, giving them more flexibility. Yet, more people than ever before are also seeking credit and debt counseling. While there are many factors influencing this, one factor is the advent of online shopping.
It’s too Easy
In the old days, you had to get in your vehicle and drive to a store in order to buy anything. If you lived in a rural area, you may have had to drive many miles just to go grocery shopping. Nowadays, you can just hop online and access your favorite stores. There are even several stores that don’t exist anywhere but online. It has simply become too easy to shop online anytime of the day or night.
It’s Often a Good Deal
Many people justify their Internet purchases because they are getting items at a better deal than if they would have bought them in the stores. A lot of people do save money by shopping online. But remember, if you buy something that you weren’t planning on buying simply because it’s a good deal, then you aren’t saving a single penny. You’re spending more, and it will take longer to succeed in paying off credit card debt.
Before, you might have had to plan a shopping trip, especially if you lived in a rural area. You would need to save your money, find a babysitter, and then drive 40-50 miles to the nearest shopping center. You may have had to wait for a couple weeks before everything would work out for you to go. Now, order online and have it in your hands in a couple days. For rural Americans, it’s become a much faster way to shop.
As with many good inventions, there is a downfall to online shopping. Most consumers use their credit cards instead of a debit card, and suddenly find themselves deep in debt. If this sounds like you, don’t despair. You are not the first person to do this and will not be the last. Seek out credit and debt counseling and you will be able to regain your former firm financial footing.
Are you a candidate for non profit credit counseling? What exactly is it and how can it help you? Read on to find the answers to your most pressing questions.
What is Non Profit Credit Counseling?
To determine if this is the route you should take to get out of debt, you should first know exactly what it is. A company that offers non profit credit counseling basically agrees to educate you about your financial situation and come up with a solution. They do not receive a profit for their services. A counseling session is usually offered at low or no cost or obligation. Once you have discussed your financial situation with a debt counselor, you can decide which path you want to take.
How Does Credit Counseling Help You?
Everyone is not born with good money management skills. Your thoughts and ideas about money and how to manage it are directly related to how your parents and other influences handled theirs. You may have decided to do things exactly as they did, or exactly opposite. If you were not taught how to manage your money effectively, debt counseling can teach you budgeting and other money skills so you can manage the money you have. If you are in debt and need help, they will come up with solutions for you such as a comprehensive debt consolidation plan.
Are You a Good Candidate for Credit Counseling?
Consider these three questions to determine if you would benefit from credit counseling.
- Do you feel like you need help developing a budget?
- Do you have debt that you need to pay off?
- Would you like to feel in control of your financial situation?
If you answered yes to one or more of these questions, a non profit counseling service will benefit you. The great thing is, most non profits do not charge you a dime for the initial consultation. It’s not going to hurt you, and it could very well help you, so find a debt counselor today.
Underemployment and a struggling economy have made it tough for some students to repay their college loans. Underemployed or unemployed students may have additional options available to them if they’re struggling with mounting debt. Students can take advantage of certain programs to reduce personal student loan debt.
Charge-offs Increase, Students Unable to Repay Loans
Equifax reported recently there are more than 123 million outstanding student loans. The report also showed that the number of unrecoverable student loan debt increased more than 36 percent for months January and February from the previous year. For many students, this is the time of year when the debts enter into collection.
Volunteer Service and Lowering Student Loan Debt
Before a student loan starts to impact the person’s credit, steps can be taken to get the debt under control. There are volunteer programs and service job opportunities that can really reduce the overall amount of the loan. Professionals who are willing to take positions serving in certain types of communities and programs can have the student loan amount reduced.
Some of the most popular options are:
- Students with a Perkins loan can teach at a disadvantaged school in their district and get a portion of the loan forgiven.
- Volunteering with Americorps, Peace Corps or Volunteers in Service to America also offer student loan forgiveness as a perk.
- Health professionals can receive up to $50,000 for their loans by volunteering at clinics where there are work shortages.
Debt Consolidation Help and Loan Debt
There is no shortage of student loan management opportunities for recent graduates who are willing to commit to several years of service. Many of these opportunities are extended to professionals from all academic backgrounds. In addition to considering a service option, one can consider a debt consolidation help plan. Counselors offering debt consolidation help work closely with creditors to create a flexible repayment and debt management strategy that fits into the person’s budget.
Maintaining a healthy debt-to-income ratio and a good payment history builds credit. A good credit score can affect a person’s employment prospects and influence the person’s ability to obtain financing for cars, homes, and even new businesses. Although student loan debt is often one of the greatest challenges a recent graduate must face, debt consolidation help and credit counseling can help the student become debt-free.