Credit card debt is the “bad” debt that brings many consumers shame and embarrassment. However, people who seek credit counseling often learn about the positive methods for improving their credit scores. For many people, it’s a dream to boast about an 800 or perfect credit score. At the same time, having good credit isn’t just about bragging. Having poor credit is a road block that can stop you from achieving many of your personal, professional and financial goals. According to a recent article by USA Today, one NerdWallet study showed 70 percent of people believe credit card debt is the worst kind of debt you can have. In fact, overall Americans under report their credit card debt to the tune of $415 billion. While lenders reported $683 billion worth of credit card debt that is outstanding or yet paid, borrows only reported $268 billion. By facing your debt with credit counseling, you start on the way to an honest, fruitful and positive life with all of the financial blessings.
When you go to buy a car
Your credit score affects you when you go to buy a car. If you can’t get approved with a traditional loan, you will have to save up cash or get a less desirable loan. People with poor credit often have to agree to special terms such as buying gap insurance, a warranty and other expensive add-ons. With credit counseling, you find out about debt consolidation so you wipe out all of your credit card debt. Once you have no credit card debt, it is typically easier to get a good car loan.
When you go to buy a house
When you go to apply for a mortgage, lenders look at your debt-to-income ratio. With credit counseling, you find out how to save up for a down payment as part of your budget. Even more important, you consider a debt management plant to get out of credit card debt. With no credit card debt on the “debt” side of your debt-to-income ratio, you will likely struggle to borrow more money for a home at a lower interest rate.
When you go to get a job or rental
Some employers run a credit report when you apply for a job or a rental home or apartment. When you talk to a certified credit counselor, you learn how to improve your credit score. While it is easy to get behind on paying credit card bills, it is also an achievable goal to live a debt-free life. Your credit score affects your ability to live in a nice home or land some jobs.
At Christian Credit Counselors, we help many of our clients get out of debt with a debt management plan. We negotiate lower interest rates on all of your credit cards and provide you with an option to make automated monthly payments. For more information on credit counseling benefits, please contact us.