Debt Counseling – Five Steps to Financial Freedom

Jeanne McTaggartDebt

Debt Counseling

When debt gets out of control, it often means you acquired too many credit cards with high interest rates and not enough money to pay off the balances. Instead of potentially ruining your future by declaring personal bankruptcy or falling for a debt settlement scam, try debt counseling. With a trained credit counselor to advise you on getting out of the debt hole, you take back the control of your finances. According to a recent article by usnews.com, there are 5 signs your credit card debt is out of control. It is never too late to manage your credit card debt with the help of a debt management plan that involves debt consolidation. In fact, it is one of the options you will hear about from a trained and certified credit counselor that specializes in positive solutions for your debt problem. The usnews.com article reports that the average American household carries $15,000 worth of credit card debt. Even if you don’t have the average amount of credit card debt, you will benefit from credit counseling and learn ways to regain and maintain control of your finances.

Getting out of Debt Denial

With debt counseling, you step into financial reality instead of staying in denial. After writing down all of your credit card balances and interest rates, you get a clear picture of where you are.

Having a specific payoff date

Also, once you make the choice to sign up for a debt management plan, you find out exactly how long it will take to get out of debt and how much you will pay each month to fulfill your obligations to creditors. In some cases, people get out of debt 80 percent faster with a debt management plan compared to other methods of debt repayment. Experts recommend keeping your goal specific instead of having a goal to get out of debt someday.

Ending the balance transfer habit

Another sign that you are over your head with credit card debt is when you repeatedly resort to balance transfers. Even though you could end up with a zero interest rate for a period of time, most people end up acquiring even more debt. The better option is to consolidate all of your credit card debt so you can start fresh.

Eating up your savings

If you are constantly tapping your savings account in order to pay your rent or mortgage as well as other major bills, consider debt counseling. A trained credit counselor will not only help you work out a debt repayment plan, but will show you how to budget, plan, set goals and save. Saving only works when you make it a long-term habit so you have more than what’s needed for occasional financial emergencies.

Feeling insecure about your Financial Future

People who have anxiety often deal with financial problems. If you have a solid job or career, it should give you a sense of financial peace. However, some people try to keep up with appearances by running up credit card debt to impress others. If your credit card debt causes you anxiety or keeps you up at night, consider debt counseling.

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.

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