For most people, declaring bankruptcy is a drastic step that not only ruins your credit, but often leaves you emotionally bankrupt. Before spending thousands of dollars on attorney fees and going though bankruptcy court, consider debt consolidation. Debt consolidation is a lot less complicated, and you are a candidate for Debt Management Plan if you have a lot of credit card debt. By signing up for a Debt Management Plan through an accredited credit counseling agency, you save your pride as well as hundreds of dollars in interest fees. According to a recent article by Huffington Post, some people ignore the signs that they are financially overextended. Maybe they think they are managing their debt, but barely getting by. Instead of staying in denial, pay attention to the signs that you need credit counseling.
You use multiple lines of credit
If you find yourself opening up new lines of credit or asking your credit card company to increase your credit limit, it’s a sign you are living beyond your means. Don’t fall into the trap of thinking you will be able to pay your higher credit card bill because of a job promotion in the future. Instead of relying on a future that may or may not happen, work with what’s going on today. With debt consolidation, you pay what you currently owe to creditors with one easy monthly payment. Because your credit counselor negotiates more attractive interest rates on your behalf, you save.
You carry debt for years
If you have a credit card balance for a few months, it’s understandable. After all, it’s easy to use a credit card for emergencies such as a car problem. If you find yourself carrying a balance on the same credit card for years instead of a few months, it’s a warning sign of financial disaster. When you agree to a Debt Management Plan, you stop running up new credit card debt so you can get rid of your old debt once and for all.
You use credit card for daily needs
Using your credit card to buy food, medication or gasoline isn’t necessarily a bad thing. It all depends on whether you can pay off the bill. Some people use a credit card because it’s convenient. However, you know you are in financial trouble if you have to use a credit card to pay for food because you have no money in your bank account and no cash at hand.
You have dwindling savings
If you notice your savings account is getting smaller while your credit card balance is getting bigger, take action as soon as possible. People who consolidate their debts often free up enough money in their budget to start building up their savings accounts again.
You are behind on bills
If you can’t pay your bills on time every month, it’s another sign you are financially overextended and need credit counseling. If you do have several late charges, the good news is a trained credit counselor is able to talk to your creditors to reduce or eliminate the late fees.
At Christian Credit Counselors, we make getting out of debt easy for our clients. Let us save you money in interest charges and late fees as well as get you out of debt 80 percent faster than other methods.
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