Financial experts say some Americans are becoming more responsible with credit card debt. One of the secrets of taking responsibility for your consumer debt without going broke is to consolidate credit card debt at a lower interest rate. With the help of trained professionals at a Christian credit counseling organization, you can fulfill your obligations to creditors while enjoying your life with debt consolidation. According to a recent article by npr.org, the Great Recession changed some consumers’ financial habits.
Stop the credit card carry over
The National Federation for Credit Counseling reports that one-third of households move credit card debt from one month to the next. To get going with debt consolidation, you sign up for a debt management plan through a reputable credit counseling agency. Because you pay your monthly debt management plan payment, there is no credit card debt carried over from month to month.
Streamline your Finances
While engaged in debt consolidation, you will likely cease to use credit cards. If you have never managed finances without credit cards, the practice will strengthen your resolve to stay out of debt and find other positive ways to finance your lifestyle. Some ideas include saving up money in an emergency account, contribution to a Roth IRA and selling items you don’t need when you need cash. When you complete a debt management plan, consider owning fewer than three credit cards. Pay off your balance each month while continuing good savings and budgeting habits.
Spending less, but living more
When you feel spiritually and emotionally enriched, you are less likely to seek material possessions to fill a void in your life. In the fall, many families spend money on back-to-school shopping. A survey by Deloitte discovered consumers plan to cut back on back-to-school spending. Even though a debt consolidation plan often frees up more money in your budget, you will feel happy without overspending. Budgeting and prioritizing helps you separate the back-to-school shopping necessities or needs versus the wants.
Other ways to become more responsible with your finances is by dividing your money up between different goals. Some people put 10 percent aside for charity. Other people make sure they save at least 10 to 30 percent for retirement or the future. You have complete power over how you spend and save. By paying your debt back and avoiding bankruptcy and debt settlement scams, you protect your family and financial future.
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.