If you have put your credit card statements aside, figuring you will get to it eventually, it’s more important than ever to consider debt consolidation. When you sign up for debt consolidation, you lower your interest rate so you can pay off all of your credit card debt in less time. It’s becoming increasingly more important to pay attention to credit card debt. According to a piece by bankrate.com, rates on existing credit card debt will likely go up as the Fed increases the prime rate. Last year, the Consumer Financial Protection Bureau found a person with about $15,000 worth of credit card debt will most likely deal with about $150 of interest rate charges if the Fed raises the rates by as little as one percent. While rates begin to go up, consider locking in on a lower rate. A trained credit counselor will talk to your creditors to negotiate a debt management plan. Unlike a debt settlement plan, it’s not about walking away from your debt. It’s about facing your debt head one, but enjoying a break given to you by your creditors who decrease the interest rates and often forgive late charges.
Getting honest about the problem
Experts say the first step you can take when you have a lot of credit card debt is to get real or honest about the situation. Consider your future goals and plans. Do you want to retire in five years? Do you hope to get out of debt so you can buy a home in two years? When you figure out your goals, you will likely find the motivation to make positive changes. A Christian credit counseling company will show you how to accomplish your goals with debt consolidation.
Making room in your budget
Some people make the mistake of having an extremely strict budget that is impossible to maintain. When you consolidate debt, you find out how much you will pay every month to satisfy all of your creditors included in the debt management plan. If you owe, for example, $150 a month to satisfy a debt management plan, you know how much is left for other bills, rent or mortgage, food, gasoline, cellular phone, cable, utilities and other items. Make room in your budget or retirement savings and emergency savings. Also, allow for a little breathing room for discretionary spending and entertainment.
At Christian Credit Counselors, we put the joy back into managing your finances. Talk to us about the benefits of debt consolidation before rates on your credit cards go up. For more details about how to get out of debt 80 percent faster than other programs, please contact us.