Credit Counseling and Divorcing Debt

Jeanne McTaggartChristian Credit Counselors

credit card debt

A Biblical Money Outlook

In order to pursue a goal, you have to know why the goal is important. Some people assume it’s better to divorce yourself of debt. In actuality, some debt is beneficial to your lifestyle as long as the debt is mortgage, car loan or student loan debt you can afford. If you have credit card debt that has gotten out of control, you can rely on Christian credit counseling to show you a better path.

Having a Christian foundation and outlook about money can provide much-needed push. It’s also important to reflect on the benefits of being free of credit card debt. Credit counselors can help you build a strong financial foundation, but it starts with eliminating debt through a Debt Management Plan. An article by Money Crashers challenges people to stop the debt cycle of life.

Keeping More of What You Earn

When you consolidate your debt with the help of Christian credit counselors, you have one monthly debt repayment bill to make that can easily blend in with your monthly bills. The goal of a credit counselor is to not only satisfy your creditors but to make your job of paying back your debt doable and realistic. That’s why your credit counselor works to eliminate late fees and reduce interest charges. When you owe less money every month, can keep more of what you make.

Saving for Retirement

People with a lot of credit card debt don’t typically save for retirement, especially if they have high interest rate credit cards. While you are paying on your Debt Management Plan and after you are free of credit card debt, you can more easily afford to save for retirement. If you meet certain income qualifications, some of your retirement contributions could be returned to you in the form of a tax credit. Similarly, if you work for a company that matches your 401(k) contributions, you will reap the financial rewards.

Reducing Stress in Your Life

Experts say people who carry excessive credit card debt also carry stress. Stress increases the risk of heart attacks and strokes. Consolidating your debt with the help of a non-judgmental Christian credit counselor can lift a burden. With less stress in your life, you are free to pursue other avenues for making more money or advancing in your career.

Your credit score will start to improve as you pay off your debt and adopt better financial habits. If you dream of owning a home or a better car, you will more easily achieve your goals once you pay off your debt. Being debt free can also improve your relationships since money problems is one of the greatest source of marital problems. Other hidden benefits of being debt free and having a better credit score include lower insurance premiums. Some employers and property managers look at your creditor score and finances when deciding whether to hire you or allow you to rent a home.

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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