Getting Unstuck from Debt
If you feel stuck in credit card debt for eternity, there are positive steps you can take. With credit counseling, you learn how to adopt positive financial habits or a different outcome. According to a recent article by Kiplinger.com, one personal finance survey discovered that 13 percent of people said they will never pay back all the money they owe. Eight percent didn’t think they could pay back all of their debt until they reach their 70s.
Forever debt or debt that feels hopeless stems from several factors including housing costs that are too high, interest rates that are too high and emergency funds that are too tiny. With the help of a certified and trained credit counselor, you can overcome the three financial challenges. Look or a credit counseling agency with a Christian philosophy so you feel encouraged in a positive way.
If your mortgage or rent is too high
A credit counselor will help you work out a realistic budget so you can pay all of your bills on time. If your mortgage or rent is not affordable, it could stand in the way of you getting out of credit card debt. By enrolling in a debt management plan, you receive a plan to get out of debt in less time. Your monthly debt payment to credit card companies will fit within your budget. While experts say the average mortgage is 69 percent of a family’s debt, you can lower the amount you pay for housing by switching to a less expensive rental unit or selling or refinancing a home you own.
If your emergency fund is too small
Experts say it is prudent to have six months of living expenses tucked away in an emergency fund. When you tap your emergency fund, you avoid running up credit card bills. Take several months to live below your means so you have liquid cash available for
If your credit card interest is too high
You can pay off your debt faster by letting responsible and trained credit counselors negotiate an interest rate on your behalf with your creditors. When you have a lower interest rate, you end up owing less money. Some people manage to complete their debt management plan in less than one year.
At Christian Credit Counselors, we provide credit counseling to people who want a positive approach to personal finances. Our clients find a solution to what used to seem like forever debt. We educate consumers about their options for dealing with credit card debt and low credit scores. For more information about credit counseling, please contact us.