Credit Card Debt and the Need for Credit Counseling

Jeanne McTaggartChristian Credit Counselors

America Paying Down Debt

Credit card debt and other money problems aren’t always signs of over-indulgence. In some cases, it is simply a sign that the American economy’s in trouble. The good news is the latest credit card debt study shows Americans paid down more than $34 billion owed to credit card companies. The amount they paid back is 7% more than in the past two years. While some consumers had the help of a Christian credit counseling agency, other consumers struggle with debt they can’t seem to conquer.

According to a Media General news report, many people desire to pay off debt but end up with higher credit card balances. In fact, the CardHub study showed the average household credit card debt balance is more than $7,100, which is the highest level in six years. If you feel tempted to increase your credit card limit, yet can barely make the minimum payments on your different credit cards, consider Christian credit counseling.

Lower your interest rate

One of the reasons you need Christian credit counseling is if you have high interest rates on your credit cards. If you are not sure whether your credit card interest rates are high, you can talk to a trained credit counselor with a reputable organization such as Consumer Credit Counselors. In most cases, a debt management program creates a new agreement between you and your different creditors. Instead of paying the old interest rate in the double digits, you’ll be pleased with a lower rate.

Eliminate late fees

Late fees and additional charges happen to even the most conscientious person. Most people have busy lives that often get in the way of managing personal finances. The good thing about enrolling in a debt management plan is the fact that you can also enroll in automatic monthly payment so you never miss a payment. As far as old late fees, your credit counselor will work with your creditors to eliminate those.

Improve your credit score

After paying off your debt through a debt consolidation program, you’ll notice your credit score start to improve. When you take the budgeting and personal finance advice of your credit counselor or “finance coach,” you’ll also make the right moves to boost your score. Having a higher credit score means you’ll receive a lower interest rate on everything from a car loan to a mortgage in the future. With a bankruptcy, most consumers sacrifice their credit score for up to a decade.

Whether you have been dealing with the constant harassment of debt collectors or simply want to make a positive change on your own, consider Christian credit counseling services. At Christian Credit Counselors, we help our clients set financial goals, come up with a workable budget and consolidate debt. We don’t judge or criticize. Instead of running up more credit card debt, be part of the statistics for Americans living a debt-free life.

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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