Credit Counseling: Treating Debt like a Financial Emergency

Jeanne McTaggartCredit Counseling

Credit Counseling

Some people use their credit cards when they have a financial emergency. But what do you do when you have maxed out your credit cards and depleted your savings accounts? By treating your credit cards like a financial emergency, you will have fewer worries. A smart way to tackle debt is with a debt consolidation plan. After seeking credit counseling, many people end up paying off their credit card debt faster than the DIY person. According to an article by Nerd Wallet, most people by now have forgotten their New Year’s resolutions such as paying off credit card debt. Credit card debt can burn a hole in your wallet, which is why it pays to get a fire burning on a metaphorical level. Nerd Wallet points out there are several reasons to start paying off credit card debt as soon as possible.

Pay less in interest

When you work with a credit counseling agency such as Christian Credit Counselors on a Debt Management Plan, you end up paying less in interest. Not only do you pay less interest because you stop running up new debt. You also pay less because the trained and skilled credit counselors negotiate lower interest rates and terms for their clients. Your creditors agree to repayment terms so you so you can fulfill your legal obligations to them. Instead of paying double-digit interest rates on high-interest cards, you could end up paying just a fraction in interest.

Get out of revolving debt

One of the most frustrating things about paying the minimum you owe on a credit card bill is that you never seem to get out of debt. Although it’s good to pay your bills on time, it’s even better to pay off your balance in full. For many people, it’s simply not realistic or possible to make one payment to satisfy all they owe on a credit card. Even with a large tax refund check or unexpected windfall, you can’t always pay off the entire balance. However, by consolidating debt, you end up with a manageable and realistic monthly payment. In a short amount of time, you will be completely debt free.

Free up money in your budget

It’s difficult for senior citizens to live on a fixed budget, but they aren’t the only ones struggling to make ends meet. Most people in debt live paycheck-to-paycheck. Once you receive credit counseling and agree to a Debt Management Plan, you will better manage your debt instead of letting your debt manage you. Without the financial commitment of a dozen different credit card bills, medical bills and unsecured debt, you will have more money left every month to save, invest and spend on items you want or need. Also, you have the peace of mind knowing you are also tackling that debt even though it feels easy and simple with a debt repayment plan.

At Christian Credit Counselors, we enjoy helping our clients achieve complete financial freedom and peace of mind. If you want to start treating debt like a financial emergency, we can show you how to stomp it out for good.

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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