It has come to your attention that you need help with debt because you are feeling an extreme amount of stress every month at just the thought of having to pay the amount that you owe your creditors. This situation is unsustainable because you have too many bills, and the minimum payments are too high. To make the situation worse, you aren’t contributing very much money toward your balances, so you are not eliminating your debts in an efficient manner.
The Answer Is Credit Card Consolidation
If you are in this situation, you are not the only one. Many Americans find it necessary to use several credit cards to help make ends meet. Now, you have several debts to pay every month, and you are looking for a way to get out of debt. Credit card consolidation is a viable solution for many people in this situation.
What Credit Consolidation Is Not
Credit consolidation does not mean that you are going to take out another loan. This would be an ineffective way to get out of debt because you would not be reducing your balances. With a loan, you would only exchange one type of debt for another. What you need to do is eliminate the debt entirely and in a shorter period of time.
The Job of a Debt Consolidator
When you choose credit card debt consolidation services, you will work with a debt consolidator who will contact each one of your creditors and explain your financial difficulties to them. Your debt consolidator will send a proposal to your creditors that offers them an amount that you can comfortably afford and that they can agree to accept. A smaller payment may reduce the stress you are under.
If you made late payments and were assessed late fees or penalties, this increased your balances, and it made it more difficult for you to eliminate these debts. Your debt consolidator will ask your creditors to waive these late fees and penalties so that you will owe less money overall.
If debt elimination is your goal, most experts like Creditguard agree that a debt consolidation loan is not going to help you achieve it. Effective help with debt comes from debt consolidation companies, so give this strategy a try today.Read More
People get into debt for a multitude of reasons, most of which are innocent or even well-meaning. Medical bills, car problems, getting laid off, family emergencies, legal affairs or unexpected home repairs are all ways that families and individuals can be blindsided by unforeseen expenses. A few months in a row of not paying attention to a budget may also cause you to get into debt.
Whatever the reason for getting into debt, there is only one answer to the question of how to get out of debt with a company like CreditGuard of America. If you’re suffering from interest rates that are too high or minimum payments that cost too much money, consider debt consolidation. Not only will debt consolidation help get you out of debt, it will also give you the skills you need to stay out of debt on a long-term basis. Debt can feel like a stone around your neck, but with help, you can watch that stone melt away.
Debt Consolidation and Getting Out of Debt
Debt consolidation is the process of paying all of your debts with a single payment. How does it work? You sign up for a debt management service and get an account with the company. The service calls all of your creditors and convinces them to waive any outstanding fees as well as give you lower interest rates and monthly payments. Once those negotiations are settled, the management service pays all of your accounts every month without fail, boosting your credit score without requiring you to take out a loan.
In return, all you have to do is pay the debt management service a single, affordable monthly payment for the length of your debt servicing. With consolidation, many customers pay their debt off in less than five years, saving thousands of dollars in interest and achieving peace of mind more than six times sooner than people who go it alone.
Once you’ve consolidated your debt, a counselor will work with you to teach you how to stay out of debt for good. Budgeting, finance, money management and other tools will be discussed during your counseling session, giving you a sound foundation from which to work going forward into your new, debt-free life.Read More
In 2008, it was reported that late payments on credit cards were on the decline. This seemed like good news until it was paired with the fact that delinquent accounts were at their third highest level in history. This was one of the first signals that the U.S. economy was about to take a nosedive. Many people became overwhelmed by unemployment and mounting debt. They lost their homes and ruined their credit scores by filing for bankruptcy in an attempt to halt the fall. While the economy has improved since that time, people continue to destroy their credit with bankruptcy discharges, but through credit management organizations, this fate may be avoided.
More than 1.5 million people filed in federal bankruptcy court in 2010, but most of those who did so did not follow the spirit of the law. Bankruptcy was meant to be a way to take account of your assets, reorganize your expenses and pay your creditors. However, the intricacies in the law allow people with modest incomes to write off huge amounts of debt in exchange for much lower credit ratings.
The average income of individuals who file bankruptcy is $31,000, and the average amount of expenses among this same group is $34,000. The amount of unsecured debt discharged in bankruptcy proceedings was about $70,000 per person, which is not out of reach of most people who have steady sources of income.
Bankruptcies are reported to all of the major credit bureaus, and the event stays on the reports for seven years. This will lower your credit rating and make it difficult to receive credit for important purchases, such as a home, a new vehicle or for emergencies. Several nonprofit and government agencies offer debt consolidation help and credit counseling services that make it possible to repay debt and avoid bankruptcy.
Debt consolidation has gotten a bad reputation because many of these services require consumers to take out new loans, which only puts them further in debt. However, another type of debt consolidation, sometimes referred to as credit management or debt management, requires no new loans and can be extremely beneficial in becoming debt-free.
A reliable credit management organization has its clients’ best interests in mind. After a thorough interview concerning the individual’s financial status, the debt manager will contact all of his or her creditors to negotiate repayment terms. These negotiations often lead to lower interest rates, a reduction in penalties and extended payments.
When an acceptable program has been developed, the individual in debt simply makes one payment per month to the debt manager who then divides the funds appropriately among the creditors. When the program is complete, the consumer is no longer in debt, and his or her credit rating is largely unaffected over the long-term.
Debt Management Counseling
Experienced debt management organizations like Credit Guard also offer credit and debt counseling. These services teach consumers important financial skills, such as how to avoid taking out new loans, monthly budgeting, controlling impulse purchases and many others. Counseling is often used in conjunction with debt consolidation to help keep consumers free from debt even after the repayment program is successfully finished.Read More
In the past, you may have found it necessary to use several credit cards until they reached their credit limits. The problem is, you are now carrying a large amount of debt and are having trouble managing it. You can’t make the minimum payments on all of these debts, and collectors are contacting you for payment. What you need is credit card debt relief, and debt consolidators are here to help you.
The Effect of Credit Card Debt on Your Credit Scores
If you were to make just the minimum payments on all of your debts, it would require about 30 years to reduce them to zero. If your situation is even worse and you are unable to make the monthly minimum payments, this causes your credit scores to decrease. When you make late payments or don’t pay at all, your creditors report this information to credit bureaus, and your credit scores suffer.
How a Debt Consolidation Program Will Benefit You
One of the best ways to receive credit card debt relief is to enter into a debt consolidation program at http://www.creditguard.org/debt-consolidation/. The outcome will be lower monthly payments because your debt consolidator will arrange to have your interest rates lowered. When you couldn’t make your payments, late fees and penalties may have been added to the balance. Your debt consolidator can ask your creditors to waive these fees so that your balances are lowered.
Without a debt consolidation program, you will be struggling with your debts for many years. With a debt consolidation program, the time it will take to eliminate these debts will be much shorter. On top of that, you will only have one monthly payment that you can more easily afford to make.
How to Keep from Incurring More Debt
While involved in a debt consolidation program with Credit Guard, you can do many things to improve your financial situation, and your debt consolidator can help point you in the right direction. For example, you will learn how to keep from adding additional debt to your current balance, and your counselor will advise that you not apply for any new credit cards.
While you are paying your credit card debts down to zero, you aren’t going to be able to add additional charges to these cards. Sometimes, people cannot help but apply for a new card so that they can continue to purchase items and pay for them later. Your counselor will show you how to set up a budget so that you can save for the things you would like to buy. You will also learn how to save for emergencies by opening a savings account and depositing between 5 or 10 percent of your paycheck into this account.
A debt consolidation loan will pay all of your credit card debts in full, but you will be left with one large loan. A debt consolidation program doesn’t require that you take on more debt. It will help you reduce your debts to zero in the shortest amount of time possible. Give a debt consolidator a call today.Read More
We all understand the need to plan ahead, the importance of a rainy day fund, and the necessity of having some money saved up to fall back on. But how should we best plan for our long-term well-being? How do we ensure that we are able to care for ourselves down the road?
This is a complex question, but a huge part of the answer, if you’re not one of the 1%, is to account for your accounts.
First of all, make sure you’re tracking how much you’re spending and how much you’re making. Everyone sometimes has months when they’re spending more than they’re making, but overall, it’s important that your income is greater than your expenses. If you have a smartphone, there are a couple of great apps that make tracking expenses easy. If you don’t, you can save your receipts and catalog them at the end of each day or week, tracking what you’re spending.
Second, be smart with the money you do have. Explore your bank’s options – are there CDs (Certificates of Deposit) that you could take advantage of? Accounts that are getting good interest rates (or at least better interest rates than the competition)? Learn about your bank and how it can help you grow your savings.
Lastly, if possible, plan for the future. Learn about the differences between IRA plans, and find which one is best for you. Check out informative financial sites like www.fool.com, and reach out to those who have more experience.
The world of finance is very difficult and can be stressful, but planning ahead is critical for you and your family.Read More