When it comes to unpleasant realities such as massive credit card debt, a lot of people underestimate what they owe. It is natural to want to believe things are in a better financial situation than you really are. With the help of a certified credit counselor, you can face your debt as well as address it with a debt consolidation plan. According to an article by Nasdaq.com, the typical American household owes more than they admit do themselves. Research by the Federal Reserve Bank of New York indicates a major discrepancy between self-reported debt and bank data for bankruptcies, home equity loans and mortgages. As far as credit card debt, the people studied stated they had $2,000 of debt, while actual credit report data showed they actually owed $3,500. Instead of staying in personal finance denial, consider consolidating your debt with a debt management plan.
Overcoming the Social Stigma
Experts say one reason people deny how much credit card debt they have is because they feel ashamed. By receiving Christian credit counseling, you enjoy the support of a non-judgmental counselor who cares about your financial and spiritual health. Paying off your debt with debt consolidation gives you a feeling of empowerment. Once you pay off your debt, you will likely enjoy the social benefits that comes with greater wealth. After paying off you credit card debt, you can use the money allocated for debt for retirement savings.
Feeling Motivated to Pay Off Debt
A credit counselor often acts as your personal finance cheerleader, motivating you to get and stay out of debt. Debt awareness is a major factor in turning around your financial situation. Once you are aware of how much credit card debt you have, you can start a plan for financial change. Your credit counselor will negotiate better interest terms so you will spend less money on your repayment plan.
Setting up a Realistic Budget
Another important part of becoming debt free is working on a realistic budget. Some people make the mistake of only guessing how much money they spend each month. To get out of denial, write down all of your bills and expenses. Learning to live within your means helps you on the path to wealth.
At Christian Credit Counselors, we work hard to teach our clients about budgeting and debt repayment. We will show you how to improve your credit score, consolidate debt and budget for future goals. Instead of financing your dreams, you can save up for specific financial goals including a new home, retirement or college.
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.
