Debt Counseling
Debt

Debt Counseling for First-Time Credit Card Holders

Credit Cards and Financial Predicaments

If you are a first-time credit card holder, you likely viewed the card as a vehicle for getting you where you needed to go in life. Whether you used your credit card to pay for a new computer, clothes or vacation, the idea of maxing out a credit card scares many new card users. By receiving debt counseling you can prevent a financial predicament as well as solve the problem of runaway debt. A recent article by cnbc.com suggests using the card to build up a good and solid credit card history. By talking to a trained and certified credit counselor, you learn what makes up a good credit report as well as ways to budget and plan for financial emergencies.

Mounting Debt

Experts say one of the reasons young credit card holders face a mountain of debt is because they associate a lot of fun and pleasure with credit card use. It is fun to swipe a credit card as opposed to parting with cash. To overcome the challenge, seek debt counseling. Budgeting, saving and planning is often fun when you get creative about your goals. For example, reward yourself with a special reward for staying on budget or meeting savings targets. Plan a major reward for yourself after completing a debt management plan to pay off all your credit card debt.

Lowering Credit Card Interest Rates

Many first-time credit card holders feel duped into credit cards with high interest rates. Instead of feeling helpless, rely on a Christian credit counseling agency to negotiate lower interest rates with your creditors. High interest rates of 18 percent or higher are not uncommon, but you can realistically achieve a lower rate by consolidating your debt.

Monitoring Your Credit Report

With debt counseling, you also learn how to monitor your credit report. When you become aware of what makes up a good credit score and report, you take the action steps to improve your situation. A good credit score affects your ability to buy a home, take out a car loan as well as get a job in some cases. Misusing credit cards is a common predicament but a credit counselor provides non-judgmental guidance.

 

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    [button shape=”rounded” size=”regular” float=”none” circle=”true” href=”https://christiancreditcounselors.org/wp-content/uploads/2015/11/Budgeting-Handouts.pdf” target=”blank” info=”none” info_place=”top” info_trigger=”hover”]Free Work Sheet[/button]

     

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    Credit Counseling – Financial Habits for the Future

    Managing Money Management

    Some behaviors predict poor money management down the road, but you can take positive steps for a positive future with the help of Christian credit counseling. According to a piece by cheatsheet.com, there are 5 main behaviors that foreshadow financial difficulties in the future. When you receive Christian credit counseling, you open up yourself to positive solutions instead of negative patterns. People who succeed in the area of personal finances establish good saving and spending habits early in life. Even if you are older, it’s not too late to learn how to keep a budget, save and plan.

    Budgeting not to Overspend

    When you get in the habit of keeping a budget, you curb the urge to overspend. People who spend more than they earn often use credit cards. By agreeing to a debt management plan, you set aside money every month to pay back your credits. With the help of trained credit counselors, you end up paying less interest on the credit cards as part of the debt management plan.

    Avoiding Poor Financial Habits

    One habit that frugal people have is to buy used items or accept clothing for items from loved ones and relatives instead of always having to buy new. Buying everything new is a poor financial habit that also affects credit card behavior. Most people don’t use credit cards when they barter or trade with friends or family, but they do use credit cards when buying overpriced new items. New merchandise simply costs more.

    Money and Your Spending Habits

    Whether you earn all your income or receive money from relatives or stock dividends, it is important to know exactly how much money is coming in and how much is going out. If you consistently spend more money than you have, you likely rely on credit cards. People spending more money than they make often feel stress and anxiety, experts say.

    Money and Retirement Planning

    Another good financial habit to adopt is saving. If you save just 10 percent of your income for retirement, you will likely have enough to supplement social security when you are older. By having a debt management plan and budget, you can put aside a certain amount to pay back debts, a percentage for retirement savings and the rest of daily expenses and bills.

    Avoiding Financial Troubles

    Experts say people who fail to save for emergencies have financial trouble in the future. With Christian credit counseling, you receive the education and tools to improve your financial habits. Because of the Christian mindset, you don’t experience any judgment.

     

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      At Christian Credit Counselors, we want people to experience financial peace. For more information about how to adopt better money management behavior and to get out of debt, please contact us.

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      Debt Counseling
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      Debt Counseling – When Financial Problems Sneak up On You

      Signs of Financial Trouble

      Past due statements, accounts closed without you and payments that reflect the minimum due are of few of the red flags that you need debt counseling. If financial problems are sneaking up on you, the best solution is to confront your reality and take positive steps to remedy the situation. According to a piece by cheatsheet.com, there is nothing to feel ashamed about if you have credit card debt that is higher than you realized.

      Relying on your credit card too often is an innocent habit that turns into a larger problem if left unchecked. Instead of remaining in denial, consider the signs of financial trouble. By enrolling in a debt management plan through a Christian credit counseling agency, you turn a negative into a positive situation. When you are completely debt free, every purchase you make will feel sweeter because you can afford the item.

      Borrowing money from others

      If you borrow money from family and friends, it can either be a positive or negative sign. Some people borrow money or take financial gifts from relatives so they can avoid running up credit cards. If you have to pay back a friend or relative, it can strain the relationship. Also, if you turn to friends or family because you have already maxed out your other sources of loans and credit, it is a major financial mistake.

      Dealing with bill collectors

      Another warning sign you your financial problems are interfering with your life is when you receive calls from bill collectors. With the help of a trained and accredited credit counseling agency, you don’t need to worry about bill collectors. A credit counselor talks to your creditors for you to come up with an agreed upon plan for debt repayment. For you, it’s all about making one monthly payment. For your creditors, it is about making right on money owed to them.

      Credit Cards and Debt

      If you rely on credit cards to pay for the basic necessities such as food and gasoline, it is likely you have too much debt. With debt counseling, you learn how to budget so you spend your paycheck on necessities first. Discretionary purchases include cigarettes, alcohol, entertainment, clothing other than work clothes and luxury items.

      Feeling paycheck dependent

      If you need your paycheck to make your monthly rent or mortgage, it means you don’t have enough in savings to cover one or two months of expenses. With debt counseling, you learn how to save up for emergencies as well as for fun vacations and holidays.

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