If you have credit card debt with an adjustable interest rate, you would have benefited from the low prime rate in recent years. According to an article by The Motley Fool, the low-interest rate environment is only temporary. Moreover, people who have double-digit interest rates on their credit cards aren’t really benefiting from the Fed’s monetary policies anyway. By choosing debt consolidation now, you can eliminate your credit card debt as well as unsecured loan and medical debt by the time interest rates increase. The Motley Fool outlines three reasons why it’s advantageous to pay off your credit cards. With a Debt Management Plan through Christian Credit Counselors, you could be totally debt free in one or two years.
- Improving Your Credit Score
The sooner you can pay off your credit cards through debt consolidation, the sooner your credit score will recover. Trained credit counselors provide credit counseling so you learn what it takes for a perfect credit score. Having a higher credit score lets you qualify for a lower interest rate on car loans and mortgages.
- Being Able to Borrow More
No one wants excessive and expensive credit card debt. However, once you eliminate all of your debt, you’ll have a low debt-to-income ratio. At that point, you are a good position to buy a home. Many experts believe mortgage debt is still “good debt,” especially at low-interest rates. Time is of the essence for still landing lower mortgage rates. In order to qualify to buy the home you desire, you’ll want freedom from credit card debt.
- Staying Out of Credit Card Debt
By receiving debt counseling and consolidating debt, you learn how to avoid falling into the credit card traps. The Motley Fool points out that the interest rate on your credit card might not seem cheap now. Unfortunately, the interest rate on credit cards can and likely will surge higher. The team at Christian Credit Counselors works with more than 400 creditors to work out a plan that is a win-win for them and for you. Negotiating a lower interest rate and eliminating late fees for your Debt Management Plan gives you the break you need. After that, it’s up to you to make one monthly debt payment to Christian Credit Counselors, the agency that distributes the funds to your creditors.
At Christian Credit Counselors, we have a team of certified credit counselors that accelerates debt repayment through a variety of proven and ethical strategies. You’ll feel at peace knowing you met your financial obligations while avoiding bankruptcy.
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