If you are unable to keep up with your monthly credit card payments, it may have crossed your mind to ask a credit card company for an increase to your credit limit. Although it might help you get through the next few months to have more “spending power,” it’s likely you’ll end up with even greater credit card debt and problems. A better way is to confine in a confidential credit counselor who will help you pay off your debt. With credit counseling, you’ll learn different strategies for budgeting, saving and planning so debt no longer becomes a source of anxiety for your family. According to a recent piece by The Detroit News, some of the major banks in the U.S. are raising borrowing limits. Although that could be good for wealthy people, it’s troubling for those with low credit scores burdened with debt. Experts say the largest increase in higher limit approval was for people with credit scores between 681 and 759, but people with blemished credit histories also saw their borrowing limits upped. As a consumer, you have options. Ultimately, you can’t solve a debt problem by borrowing.
Consolidate your debt
When you talk to a trained and certified credit counselor, you’ll learn about debt consolidation. Instead of raising your borrowing limit, you can reduce your monthly expenses with a Debt Management Plan. At a reputable organization such as Christian Credit Counselors, credit counselors tackle your debt for you by getting creditors to agree to lower interest rates. If you raised your credit limit, you might have enough to supplement your “income” for a few months, but will end up with more credit card debt. With debt consolidation, you have a lower monthly debt payment. After a period of time, you are completely free of credit card debt.
Become financially fit
Just as you worry about your physical fitness, it’s smart to become financially fit. One way credit counseling helps is by teaching you how to budget. Not only do you have to budget for the predictable monthly expenses and bills, but you also learn to anticipate financial responsibilities in the future. For example, you can review your credit card statements, bank statements and receipts for a general idea of how much you’ve spent in the past on unexpected home or car repairs, trips for funerals or weddings and basic living expenses during periods of illness or unemployment. In addition to budgeting, it’s important to save for major goals including home ownership, college and retirement. While increasing your credit limit will give you temporary money for clothes or food, you can’t put your retirement on a credit card. Many colleges and universities don’t allow you to pay for tuition or books by using a credit card.
At Christian Credit Counselors, we make sure you succeed with a debt consolidation plan that’s simple and convenient. That’s why we offer an Automatic Pay System so you’ll stay on track.
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