Debt Counseling as a Helpful Tool for Reducing Your Lifetime Cost of Debt

Jeanne McTaggartCredit Counseling, Debt

Debt Counseling

When it comes to your credit score, there are different tools to assist consumers struggling with too much debt. By accepting debt counseling as a personal finance improvement solution, you learn that many factors impact your credit score. Whether you are late on payments, how much available credit you use, how long you have had credit cards and how many credit cards you have all affect your score. For people who feel overwhelmed and can’t pay the minimum balance on all of their cards, the perfect solution is debt consolidation. According to recent article by credit.com, there are several helpful tools to boost your credit. After talking with a certified credit counselor, put the different tools to work for you.

Spending alerts

One helpful tool is a spending alert that keeps your spending in check. Most experts advise you don’t spend more than 30 percent of your available credit. If you find you have surpassed that benchmark or maxed out your credit limits, seek out debt counseling. A credit counselor helps you set up a budget as well as a debt management plan to get completely out of debt.

Payoff calculator

A payoff calculator is fund to use. When you consult with a credit counselor for a debt counseling session, you learn how to get a handle on your debt. You come up with a plan together to pay off the credit card debt. What’s even better is the fact that a debt management plan gives you an exact payoff date so you know how long it will take to free yourself of credit card debt.

Fraud alerts

It is important to have fraud alerts and protection on your accounts. To avoid becoming a victim of identity theft, make sure you have passwords on your accounts. Also, check your credit report and fix any errors. A credit freeze protects you if someone has messed with your financial and credit accounts.

Other helpful tools include budgeting, using cash to pay for items instead of credit and looking at a lifetime cost of debt calculation. Seeing how much money you spend on interest often opens your eyes to more positive alternatives. With debt consolidation, you save money on interest so your lifetime cost of debt is much lower.

At Christian Credit Counselors, we dedicate ourselves to our customers. For more information about debt counseling and how to pay off your credit card debt 80 percent faster than with other methods, please contact us.

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