Credit Card Counseling When Debt is at Pre-Recession Levels

Jeanne McTaggartChristian Credit Counselors

Christian Credit Counselors

Experts say credit card debt declined for years, but is back to pre-recession levels. Many individuals leaned how to save and practice frugality during the Great Recession. By receiving Christian credit counseling, you can get a refresher on budgeting and financial goal setting as well as learn how to consolidate debt and boost your credit score. According to a recent article by cnbc.com, credit card debt in the U.S. will likely hit $900 billion by the end of 2015. The average American household’s credit card debt will end the year at about $7,810, which is the highest in 7 years. Instead of reverting to poor financial habits of the past, consider Christian credit counseling.

Working on your FICO Score

Experts say the average FICO score in the U.S. is 695. When you receive credit counseling, you learn about your own credit score and how to improve it. With a bankruptcy, your credit score rapidly falls. However, many people who go through a debt consolidation program with a reputable non-profit agency notice their credit score greatly improve over time.

Paying off Your Credit Card Debt

The cnbc.com article points out many people think it is fine to have a high outstanding balance on their credit cards. A bankrate.com study discovered 77 percent of people didn’t know a high outstanding balance hurts their credit score. With Christian credit counseling, you overcome the misconceptions and myths regarding personal finance issues. When you sign up for a debt management plan, you pay off all of your credit card debt so you no longer have a high outstanding balance.

Diving into your Spending Behavior

Another benefit of credit counseling is you learn not only how to get out of debt but the risk factors you face as far as perpetual debt. When you understand how you got into debt, you can make changes to your behavior and attitudes. You will likely have more money to save for retirement and goals when you stop trying to impress friends or relatives with purchases you can’t truly afford.

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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