Do you think you need debt consolidation help? If you feel like your debt situation is too much for you to handle, do not be ashamed to ask for help. There is nothing wrong with admitting yourself that you are not an expert when it comes to your finances.
The thing about credit is that it is hard to completely erase it from your life. Our consumerist society made it hard to do so. The presence of credit reports alone makes is a necessity for most people. Using credit cards helps maintain a high credit score – which is effective in helping us take advantage of financial products and opportunities.
This is probably why the average American owns 3 credit cards. Despite the high-interest rate, people still use it because it is convenient. It is also the reason why the average credit card balance is more than $6,000. For some people, it can be very hard to pay this amount. They are forced to pay it in installment – making them pay more because of the interest rate.
If you feel like you are not progressing despite your efforts in paying off your debts, you might want to get professional help. There is an effective debt consolidation help that can get you closer to debt freedom.
Getting help from debt experts is not a bad thing. You will find that it is easier for you to achieve debt freedom if you have a professional working with you. That way, you can get a lot of tips, not just on how to get out of debt, but also on how you can stay out of it.
Signs you need to get debt consolidation help
Did you know that 9 out of 10 Americans believe that they can manage their finances better than the federal government? This is hard to believe – given the high amounts of debt that people have.
While we admire this level of confidence, it does not erase the fact that some people are in need of debt consolidation help. Some might not even be aware that they are in need of debt consolidation help. Here are some of the signs that indicate you are in need of professional help.
You can only pay the minimum
This is usually applicable to credit card debts only. The billing statement of these cards come with a minimum payment requirement. Although you are allowed to pay this amount without incurring penalty charges, it is not advisable for you to follow it. If you stick to the minimum payment, it will take you forever to pay off your credit card balance. But if you are in this position because you cannot afford to pay more than the minimum, that is a sign that you need debt consolidation help.
You are relying on a credit card for basic expenses
One thing that is worse than being stuck to paying only the minimum amount is being forced to rely on your credit cards to pay for basic expenses. This means your financial situation is no longer enough to cover all your needs. This is not just a sign that you need professional help. It is an indication that something is really wrong with your financial condition. You need to do more than just pay off your debts. You have to change your financial habits. If not, you will end up landing in the same debt situation.
You do not know how to manage your money
Another sign that you need debt consolidation help is when you have no idea how to manage your money wisely. You have to realize that financial management is the key to growing your personal net worth. It is not about how much money you are earning. If you do not know how to manage it properly, you will end up overspending and accumulating debts. Unfortunately, not everyone is equipped with the right personality to make them a natural at managing their finances. If you are one of them, you need to get professional help. Just hire them at the beginning until you learn the basic financial skills that will help you manage your finances better.
You do not have an emergency fund
If you do not have an emergency fund, that is also a sign that you need professional help. This is especially true if you are finding it hard to stretch your budget to accommodate both savings and debt payments. A debt consolidation expert can assist you in creating a repayment plan that will leave room in your budget for your emergency fund. That way, you can pay for your debts while saving for emergencies.
You need to get out of debt fast
In case you need to get out of debt fast – because you are about to retire or you just want to get rid of it, hiring a debt consolidation help will do the trick. They will know the right debt solution that will expedite your journey towards debt freedom. Their knowledge will save you both time and money. Your options will already be filtered so you can choose quickly and correctly.
You do not have the time to manage debt payments
People who do not have time to manage their own debt payments is also the perfect candidate for debt consolidation help. These are the people who are usually too busy at work to focus on their debt relief program. If you cannot concentrate on debt relief, there is a higher chance that you will make a lot of mistakes. It is better to just get the help of a professional who can guide you throughout the debt consolidation process.
Where to get debt consolidation help
If any of the signs apply to you, then debt consolidation help may be what you need to achieve complete freedom from debt. Here are the different ways that you can get help from debt experts.
A credit counselor is someone who can advise you on your debt options. They can help you understand your options – and even point out where you went wrong in your financial decisions. These debt experts usually work with non-profit organizations. That means their services are free. Of course, you will still be in charge of managing your own debts but they can give you the proper guidance on what to do.
If you want to take the services of a credit counselor to the next level, you can opt for debt management. When you enroll in a debt management program, the credit counselor will create a debt management plan or DMP. This plan will be based on how much you can afford to pay each month. Once you agree to it, the DMP will be presented to your different creditors and lenders for approval. After approval, you will send a single payment (based on the total monthly payment in the DMP) to the credit counselor and they will disburse the amount to all your credit accounts.
Finally, you can opt for debt settlement. This is perfect for those who need debt reduction. Of course, this involves negotiating with creditors and lenders. If you cannot handle the negotiations, you should get debt consolidation help. The debt negotiator can represent you and talk to the debt collectors to convince them to reduce your balance. It involves offering a settlement amount that is smaller than the amount that you owe. Once you have paid this amount, anything that is left will be forgiven.