Debt Relief Through Debt Consolidation

Posted by on Dec 28, 2013 in Debt Management | 0 comments

debt relief from headacheFor consumers unfamiliar with debt consolidation, the first questions are usually, “does it work?” and “how quickly can I actually get debt relief?” Debt consolidation is growing in popularity, and as it catches on with more and more American families as a mainstream approach to debt management, more people have questions about its effectiveness.

The reason debt consolidation from companies like Credit Guard of America has become so popular is because it is a low-risk, high-reward service that provides a win for everyone involved. Individuals in debt win because they get lower interest rates and faster debt relief; the debt consolidation company wins because it charges a small fee for its service; lenders win because they reduce their risk by allowing the consolidation providers to assume the risk on their behalf.

Is Debt Consolidation For You?

Debt consolidation is designed for individuals and families who are unable to pay their debts under their current circumstances and within a reasonable amount of time. If you are barely making minimum payments on your debt, consolidation may help you lower your interest rates so you can afford to pay off more of your debts each month. This helps you pay off debts sooner, so you can get back to saving more of your money for major purchases or retirement.

How Quickly Does Debt Consolidation Work?

Debt consolidation achieves desired results at different rates for different people, depending on how much they are willing to pay per month, the level of interest rate reduction and the amount of debt being served. Some have reported paying off all of their credit card and other unsecured debt as much as six times sooner than they would have if they’d continued making minimum payments.

People often trade a small fee each month for lower interest rates. But over the course of the loan, some save thousands, which more than covers the money spent paying for consolidation.

In other words, while consolidation isn’t an immediate silver bullet, it can be part of a proactive approach to achieve debt relief. This is why it is catching on with so many American families. Most people know enough not to fall for scams or loan offers, and debt consolidation is neither. It may be wise to consult with a credit counselor or other financial professional before beginning debt consolidation.

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How Credit Counseling Can Change Your Life

Posted by on Dec 18, 2013 in Debt Management | 0 comments

Someone once remarked that the homeless guy on the street often has a higher net worth than the people putting change in his hat. Because while that man’s financial worth may be only $10 or so, hundreds of people passing him by might have a net worth in the negatives because of all the credit card debt that they possess. Debt can be an overwhelming part of your financial life. But the good news is that you can change your circumstances by taking action. You may want to start by enrolling in a credit counseling (also known as a debt counseling) program.

Get Budgeting Assistance

Most people who struggle with debt have no idea how much money they spend in relation to their income. Creating a budget isn’t difficult, but many people don’t see the need. If you want to pay off your debts and get on the road to better financial circumstances, it is one of the most important steps you can take. Credit counseling services can show you exactly how much you owe, how much time it will take you to pay it off and what steps you need to take to do so. By having a concrete road map in front of you, reaching your goals will become much more manageable.

Exploring Options

People don’t live under a thundercloud of debt because they want to. They live that way because they don’t know their options. A good consumer credit counselor can show you a world of opportunities and alternatives, one of the most powerful being debt consolidation. By rolling your outstanding debts into a single monthly payment, you can really focus on paying down the principal. With the right map and a singular focus, there is no limit to what you can achieve.

A New Way to Think About Credit

Though many who associate debt with frustration and desperation will disagree, credit isn’t an inherently evil thing. It’s all in how you use it. Credit, when used to get a mortgage or pay for an education, can be a powerful and positive tool. But when used to make ends meet or pay for better Christmas presents than you can really afford, it can be a very dangerous thing. With credit counseling, a counselor will help you think about credit in a new way, teaching you the facts you need to know in order to avoid trouble in the future. With your precise road map, a simple goal and a wealth of new knowledge, you can change your financial circumstances forever.

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Helping Your Kids Adjust to a Debt Management Plan

Posted by on Dec 3, 2013 in Debt Management | 0 comments

money

Starting a debt management plan is a positive step towards regaining financial security. However, it will also mean that your family can no longer use credit cards to live beyond its means. Because you’ll have to curb spending, you’ll also have to start saying “no” to some of your kids’ purchases. They may struggle with the changes, but you can minimize friction by taking some of these steps:

Tell Your Children What’s Happening

Some parents want to shield their kids from every family challenge, but children often feel better when they know the truth. Tell your children about your debt management plan, but keep these keys in mind:

  1. Keep it age-appropriate: Let them know that you’re working to get up-to-date on your bills. Tell them that it means spending less money, but reassure them that they’re safe and that they won’t lack essential items like food and clothing.
  2. Avoid blaming yourself: Use the pronoun “we.” Say, “We have been overspending” or “We need to eliminate our debt.
  3. Avoid making promises: It’s easy to give your kids false reassurance by telling them that your tight budget will end soon. Unfortunately, you don’t know what the future holds. Also, you don’t want to return to the habits that got your family into debt. Acknowledge their fears, but avoid making promises that you can’t keep.

Involve Them in the Decision-Making

Let your kids negotiate items that they’re willing to give up in order to cut family spending. For example, they may be willing to mow the lawn and let the landscaping service go if you keep paying for music lessons. Also, involve them in on-the-spot decisions. At the grocery store, ask them whether they’re willing to give up name-brand cereal in exchange for a bag of chips.

Share Your Family’s Progress

Let your kids see that less spending is making a difference. If you get involved with a financial expert like Credit Guard, talk to them about the lessons that you’re learning personally.  Show them how you’ve progressed on paying down credit cards or how much money you’ve added to your savings account. By involving them every step of the way as you get out of debt, you’ll help them to avoid similar problems later in life while teaching them the importance of an effective and efficient debt management plan.

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