April 19, 2015

Credit Counseling

Some people think people who receive credit counseling stay away from credit cards for the rest of their lives. In reality, you do stop using credit cards while enrolled in a debt management plan to pay off your creditors. With credit counseling, you take back the power by learning how to use credit wisely in the future. Some of the advantages of credit counseling through a reputable organization such as Christian Credit Counselors are finding out you aren’t alone and there is an easy way to get out of debt. Your trained credit counselor works with your creditors to eliminate late fees and lower interest charges. Christian Credit Counselors offers “Automatic Pay System,” which means you’ll be free of new finance charges and late fees. Talking to an empathetic and non-judgmental credit counselor helps you figure out where you went wrong. You’ll end up feeling uplifted, empowered and optimistic about where you can go from here, but first consider some common credit card mistakes.

Paying bills late

By consolidating debt and taking part in a debt management plan, you’ll feel less stress. Just as you take advantage of the Automatic Pay System, you can also set up bill pay online for your various expenses such as utilities and car payments. People who used to pay their credit cards learn how credit card companies jack up the interest rate when they make a late payment.

Botching balance transfers

According to an article by Kiplinger, bungling balance transfers is a common credit card mistake. You will likely feel tempted by an introductory interest rate. However, if you don’t solve the underlying reason you rely on credit cards, you’ll likely end up with even more credit card debt than you started with. By relying on a debt management plan, you end up with zero debt instead of more problems.

Taking out cash advances

Kiplinger points out another mistake people make is taking out cash advances using their credit cards. Some credit cards charge a $50 fee for cash advances, while others give you a higher interest rate. With credit counseling, you figure out a way to budget for your bills as well as save for emergencies. Even when you go back to using credit cards in the future, avoid cash advances unless it’s an extremely rare emergency situation.

Spending to get rewards

If you are buying things you don’t really need just to get the rewards offered by your credit card company, you may find yourself stuck in debt. It’s easy to get lured by the idea of free airline tickets and other perks for spending. With credit counseling, the rewards are in saving. You save money by paying less in interest as well as literally put money aside for your future. Living below your means is a fun adventure.

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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