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Different Ways To Get Credit Consolidation Help

February 11, 2020 By editor

Do you think you need credit consolidation help? If you are one of the 61% of Americans who plan to pay off their debt this year, you need to consider all your options. It is not easy to get out of debt – especially if you have a lot to pay off. Credit cards are the worst. It has very high-interest rates. If you do not pay it off quickly, the interest will cause your debts to increase. In the end, it can cost you a lot of money.

Obviously, you would want to pay off your debts as soon as possible. It is not just money. It is also the stress that comes along with having debts to think about. But then again, how will you do it? Where will you start?

Admittedly, debt can be intimidating especially when you have left it out of control. What you do with your finances right now will determine the security of your financial future. But the truth is, it does not have to be hard as you think it should. There are ways to make the process easier for you.

One of the ways you can do this is to get the right debt solution. The other is to get credit consolidation help.

2 professionals that provide credit consolidation help

There are people who are not open to getting professional help. They think it is a waste of money. They also feel embarrassed at the thought that they messed up so badly that they needed an expert to step in.

Well, you need to change your perception of credit consolidation help. First of all, there is no shame in asking for help. In fact, it is very brave of you to acknowledge that you made a mistake. That is the first step to really solving your problems. And when you find a legitimate debt consolidation company to help you, the path will be clearer. You will find it easier to take the next steps to get out of debt.

So who are the debt experts who can provide you with credit consolidation help?

Credit counselor

A lot of credit counselors work for a non-profit organization. So if you are worried about the monthly fees, you do not have to worry about it wreaking havoc to your bank. Unless you opt for debt management, you do not have to pay monthly fees. But even the dent management fees are minimal.

So what can a credit counselor do for you? If it is credit consolidation help that you need, that is exactly what they can help you with. First, they will ask you about your financial situation. You have to be honest with them so you can both determine what the problem is about your finances. What led to your debt? This is an important question to answer if you want to solve your debt problems. You will discuss your options to get out of debt. Usually, this service is free. But if you want more out of the service, you might have to pay a little.

It is not mandatory but you have the option to enroll in their debt management program. This is where they will help you create a debt management plan (DMP). This plan will contain all your credit accounts and the amount that you will pay each. The idea is to create a monthly payment that you can afford – even if it is way below the minimum payment requirement. The credit counselor will talk to your creditors and lenders to ask them to accept the DMP. After their approval, you will send a single monthly payment to the credit counselor. This amount will be the sum of the monthly payments of your credit accounts. The credit counselor will take care of distributing the payment to your creditors and lenders.

Debt negotiator

Another source of professional credit consolidation help is through a debt negotiator. Their job is similar to that of a credit counselor. But they will do more than just organize your debts and payments. They will work on helping you have your debt balance reduced.

Do you think that is not possible? Well, now you know that it is. There are debt negotiators who can help you settle your debts. They will take a look at your multiple credit accounts and discuss with you how much you can afford to pay. They will try to negotiate the highest reduction that they can to help you save money. While the amount of reduction will not be guaranteed, they will try to reach the highest rate that they can. And the higher it is, the more savings you will get.

And if you find the right company, you will even get financial lessons through the debt relief program you are using. That will really help you stay out of another debt situation in the future.

Signs you need professional credit consolidation help

The truth is, not everyone needs credit consolidation help. But they seek it out because it can make things easier. If you find the right debt expert to work with, they will give you the direction that you need to achieve complete debt freedom.

You will be surprised at how much negative effect debt has on people’s lives. One study revealed that 7 in 10 American adults have cried over their finances. Debt can cause that much stress – enough to make you cry. When you are feeling this bad about debt, it can be hard to keep a clear mind. It will be difficult to make the right decisions. This is when having a professional working with you can really help.

Here are some of the signs that you need a debt expert to help you.

If you are too busy to focus

We all have a lot of things to take care of in life. This can sometimes get in the way of our efforts to put our credit situation in order. It could be our work that is keeping us from focusing on our debt relief efforts. If this is true, then just get professional help. That way, you can rest assured that someone will focus on your debt payments. You can do what you do best at work and not worry about whether you have forgotten a payment or two.

If you are confused about what to do

Another reason to get credit consolidation help is when you feel confused. There are a lot of debt relief options and they are all effective. However, there is usually one debt solution that is perfect based on your specific situation. It can be confusing to figure out what that is. If you have a professional look it over, they may be able to figure it out in no time at all. So just let an expert help expedite the process. That way, you can get out of debt faster.

5 Rules That Will Make You A Smart Credit User

February 8, 2020 By editor

We are in need of a refresher course when it comes to being a smart credit user. Despite the brutal financial experience after the Great Recession, we are at it again. We have racked a lot of debt once more. It seems like we have forgotten what we went through a decade ago.

But all is not lost. Although economists are saying that we are on the verge of another recession, our economy is still holding out. That means you still have time. Do not be reckless with your use of credit anymore. You have to make your financial position stronger so you can withstand the coming recession. Because no matter what they say, it will happen. It will be delayed, but it will come to pass.

The question is, what can you do to prepare your finances? Do you have to completely give up the use of debt?

The answer is no. you don’t have to stop using debt. On the contrary, you should still keep on using it. But you have to be a smart credit user. It is not as impossible as you think. In fact, we can take some tips from one generation.

The Gen Z (18 to 24 years old in 2019) seems to be using credit like they have been doing it for years. According to a report, despite their active use of credit, Gen Z has a generally prime credit score. This is a sign that they are using credit but they have it under control.

5 rules that a smart credit user should follow

While the report did not reveal what the Gen Z consumer base is doing, it is not hard to figure out how you can be a smart credit user. It is all a matter of taking control of your finances. Because we only end up with a lot of credit problems because we are not careful. It is true that there are causes of debt that is beyond our control, but that does not mean we cannot prepare for it.

If you want to feel more secure about your finances despite your use of credit, you need to follow certain rules. Here are 5 of the rules that will help you become a smart credit user.

Pay in full whenever possible

This is actually the number 1 rule when using credit cards. It will save you a lot of money on interest if you only pay your balance in full before the due date. Creditors usually earn from the finance charges added to the balance that is carried over to the next billing cycle. This is calculated based on the balance and the interest rate of the card. With the high-interest rate alone, you know that this finance charge will be costly.

Fortunately, there is a way to avoid this charge. You just have to pay your dues within the grace period. This is any date between the date of purchase and the due date of the billing where it is included. You should make a habit of paying your credit cards this way to ensure that you will only be paying the amount of what you spent on.

Prepare for big purchases

A smart credit user should not use debt that is more than what they can pay at the end of the month. But if there is a big purchase that you really need to buy, do everything you can to prepare for it. This means you have to be aware of what needs to be replaced or repaired in your home. It is these expenses that will sometimes push you into unnecessary debts. Car repairs, broken appliances – these can make you spend a lot at one time. And these can be anticipated. Cars should undergo yearly maintenance. You need to prepare for these ahead of time.

The same is true for emergency situation. Make sure you save up enough for your emergency fund. That way, if someone gets hurt or needs medical attention, you don’t have to hesitate. You can afford to get them medical help. You do not have to rely on credit. In case you want to use your cards, you can pay for it in full.

Practice self-control and discipline

If you are used to making credit purchases, it can be hard to break the habit. But if you really want to be a smart credit user, you need to learn how to control your spending urges. Not only that, but you should also be more disciplined with how you spend your money. If it is not necessary, hold back on spending. You can use that money to pay off your existing debts or boost your emergency fund.

And when you put aside some money for your credit card bills, do not spend it. Keep it safe so you can pay off your dues in full and avoid the finance charges.

Keep an eye on your finances

Monitoring your financial activities is a great way to detect problems with how you spend. It will also ensure that you are following your budget and keeping up with your financial obligations. Tracking your expenses will keep you updated on your current financial situation. That means you will always make informed decisions. If you have to decide to buy things, you will know, based on facts, if you can afford it or not. It will keep you from overspending and landing in debt.

Be ready with a repayment plan

In case you cannot afford to pay your debt in full at the end of the month, that’s okay. If you really need that purchase, you might want to ensure that you have a repayment plan in place. Because if not, you might end up spending a very long time paying it back. Take the recent holiday spending as an example. Reports revealed that Americans spent an average of $1,325. And based on a survey, 15% of those who racked up holiday debt can only afford to pay the minimum. If you know that you cannot afford to pay your balance in full, make sure you have a repayment plan. Commit to an amount that you can pay towards this debt. Make sure that this is an amount that is higher than the minimum. Otherwise, you will spend a long time paying off the debt and you will spend a lot of money on the interest alone.

Tips for smart credit users

Being a smart credit user is not really that hard. But you have to be committed to making the right choices. It requires consistent effort for you to develop the habits that will improve the way you use credit. It all starts with certain money management tips that will keep your credit use under control.

Always pay more than the minimum. If you cannot pay your balance in full, at least pay more than the minimum. This will minimize the amount that you have to pay.
Stay below the limit. The ideal level is 30% of your credit limit. If you know that you are going beyond this limit, keep away from new credit purchases. The more debt you owe, the harder it is to pay off. Not only that, it will have a negative effect on your credit score.
Never get cash advances. If the interest rate on credit card purchases is high, it is nothing compared to cash advances. The interest is very high and can quickly make your debt spiral out of control.
Learn to negotiate. If it all becomes too much, do not hesitate to negotiate with your creditors or lenders. This is one of the skills that a smart credit user should do. Know your rights and negotiate your debts so it is easier to pay off.

Money Management Tips To Get Your Debts Under Control

January 18, 2020 By editor

It is very timely to receive money management tips at this time of the year. Starting a new year feels like you can reset your life. If you committed mistakes in the past, this is the perfect time to correct those.

Money Management Tips To Get Your Debts Under Control

According to one survey, more than 8 out of 10 respondents said that they would rather save $5,000 than 5 pounds off their weight. Considering how much we have become obsessed with our health, this is a big thing. It shows that consumers understand how important it is to get their finances in order. Either that or their financial situation had become so dire that money has become more important than their health or physical appearance.

The truth is, your finances is very important. This is especially true if you include debt in the picture. When you let debt get worse without trying to solve it, this can compromise your financial future. It can keep you from reaching the goals that would have improved your finances. Instead of being able to enjoy your life, you have to split your limited income to pay for your debts.

This is why it is a good idea to start working on your debts as a way to improve your financial position.

Money management tips that will make debt relief easier

Admittedly, getting rid of debts is hard. It will take a long time to complete. Not only that, you will find yourself trying to suppress urges that can compromise your monthly payments. There are also causes of debt that are oftentimes beyond our control. Medical debt and a failing economy are among the causes that can lead you to debt.

What can you do to pay off your debts with these scenarios making it more difficult?

This is when money management tips can really help. Here are some of the tips that can help you get your debts under control.

Analyze your current budget plan

Start with a budget plan. This will allow you to see the current status of your finances. It shows your income and where the money goes every month. Make sure this is updated. Sometimes, people end up in debt because their budget plan was not updated. For instance, they should have added extra medical expenses in there. But since this was not included in the budget, there were no funds allocated for it. When the time comes for the medications to be paid off, you have no more cash. Since this is an important expense, you will resort to using debt. This is how some debts grow.

Make sure your budget plan is updated and aligned with your current lifestyle and expenses. That way, you can decide on what you should cut back on in case your income is no longer enough to cover your monthly financial obligations.

Reevaluate your debt payment plan

If you are in debt, make sure you check your debt payment plan. In case you do not have one, it is high time for you to choose a repayment plan. Make sure you consider your budget while you are making a choice. This is one of the important money management tips that you need to implement if you want to conquer your debts.

Even if your debt payment plan worked before, things can happen to change that. If your budget plan changed, your current debt solution may no longer be enough to get you to complete debt freedom. You need to change that. Fortunately, there are a lot of options to get out of debt. So you can easily make a choice among them.

Hold off using more credit

The last of the money management tips is to hold off the use of credit. At least, until you have paid off your current balance. You need to stay away especially from credit card debts. These have high-interest rates that can quickly make your balance grow. According to a survey, credit card debt is the biggest regret of 24.1% of their respondents. Try not to make yourself a part of this statistic. Make sure you stay smart with your spending. Do not use credit if it is not a life or death situation. If you are uncertain about the future, give your emergency fund a boost. This will help you pay for unexpected expenses so you will not have to rely on debt.

How to use money management to improve your finances

Money management tips will not just help get your debts under control. It will also help you improve your finances. If you want to have a better financial situation by the end of this year, you might want to consider using these tips.

Know your priorities

Start by knowing what your priorities are. Define what will make you happy. What is financial success for you? Is it having more money? Or maybe less debt? What improvement can you make on your finances that will make you feel fulfilled? Focusing on this will make everything more motivating. Sometimes, it is just your mindset that is keeping you in debt. If you know that your efforts will help fulfill your priorities, then it is easier to find the motivation to implement proper financial management.

Determine your monthly income

While you are analyzing your finances, determine your current monthly income. This will help you understand your financial capabilities. It will also identify your spending potential. This is a piece of useful information when you are trying to implement the right money management tips to improve your finances. It will help you understand your limitations. You get to make better decisions especially when it comes to taking risks with your money.

Track your expenses

This is one of the money management tasks that people have a hard time following. Admittedly, it can be tedious. You need to list or take note of every expense that you make. It can be hard when you are making purchases in a hurry. But that is actually what this tip is trying to teach you. It teaches you to pause and take note of what you are spending on. By practicing the pause, you are keeping yourself from impulsive purchases. But once you get used to it, you will notice that you will do it unconsciously. The chances of overspending will be less likely to happen.

Always have a goal

Another money management tip is to always have a goal. When you have a goal, you make smarter financial choices. Your goal will always be at the back of your mind. It will influence how you spend your money. Instead of buying something, you will think twice because you know that money can help you reach your financial goal faster. Unless it is important, you will not spend on it. This will help you develop the habit of spending with a purpose. It is a good habit to have.

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