March 6, 2015

Credit Counseling

Some people think their main financial challenge is having a low credit score. Perhaps a finance officer turned them down for a mortgage loan or offered them a double-digit interest rate on an automobile loan due to a poor credit score. When you receive prudent credit counseling from trained professional, you learn about a good credit score and how to budget, save, boost income and pay off debt through debt consolidation. According to a piece by, a great credit score won’t solve all of your financial problems. A lot of people with a good credit score still have too much consumer debt. With credit counseling from a reputable organization such as Christian Credit Counselors, you can improve all aspects of your personal finances. When it comes to improving your credit score, there are a few issues to consider.

Realize your credit card score changes

When you first sign up for a Debt Management Plan, your credit score could take a temporary dip. Most creditors agree to a lower interest rate so you end up owing significantly less money. As you pay off your debt with one simple debt repayment each month and make other wise financial moves, your credit score will likely increase. According to, you can increase your credit score by paying bills on time.

Reduce your number of credit cards

Many people can’t handle possessing too many credit cards. Some experts recommend people carry only two credit cards. If you have credit cards as well as department store credit and gasoline cards, you risk being disorganized and missing due dates. By consolidating your unsecured debt, you get a fresh start. After becoming debt free, many people streamline their personal finances but still use one or two credit cards with low-interest rates.

Improve your cash flow

Just because you have a lot of credit doesn’t mean you have the income to pay your minimum balance much less the entire balance due. If you run up your credit cards and then experience a job loss, it’s likely you’ll run into financial problems. By finding different streams of income and keeping your debt at a minimum, you’ll have your financial bases covered during income droughts. Experts recommend you use a low percentage of your available credit. Reaching your credit limit isn’t your goal. Different ways to improve cash flow include investing in dividend-paying stocks, receiving rental income from a property, asking or a pay raise and getting a second job.

Set a realistic budget

With credit counseling, you’ll learn how to set a realistic budget. Your budget should include housing expenses, food, cellular phone, gasoline and transportation costs, schooling, childcare if applicable and debt repayment. With debt consolidation, the debt repayment part of your budget is more predictable.

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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