Feeling confident is a positive trait, but a new survey shows some Americans have big gaps in their financial knowledge. With debt counseling, you can become financially savvy and learn about ways of getting out of debt. According to a recent article by usatoday.com, a new survey by Fifth Third Bank showed almost 60 percent of people believed they are financially savvy. However, of the people who felt confident of their financial knowledge, only 38 percent knew the annual percentage rate on the main credit card they use. Sixty percent said they don’t have enough money in savings to keep them afloat for at least 6 months. Ninety-percent of those surveyed didn’t know how much money they could contribute to a 401(k) plan. Experts say a lot of young people don’t learn about personal finances because it’s not taught in school. Also, money is a sensitive topic for a lot of families. With confidential and discreet debt counseling, you can get the answers to any of your money questions. A trained credit counselor is there to provide you with support without casting judgment.
Earning interest instead of paying it
One of the great things about saving and investing is that you understand the flip side of interest rates. When you have credit card debt, you pay the credit card companies hundreds or even thousands of dollars in interest charges. By consolidating your debt, you get to enjoy lower interest rates. With the money you save over time, you can save and invest so you get a positive return on your money.
Protecting your credit score
Many people feel like they have no control over their financial situation because they owe so much money. If you have ever felt tempted to declare bankruptcy, consider debt counseling. A positive alternative to debt settlement scams and costly bankruptcy proceedings is debt consolidation. With bankruptcy, you essentially ruin your credit score for years. Without a decent credit score, you will be less likely to buy a home or a car. With a debt management plan, you feel better knowing you paid back what you owed. A Christian credit counseling organization simply got you a better deal by negotiating lower interest rates.
Budgeting for today and the future
A credit counselor shows you how you can make a monthly payment to a debt management plan while still affording your other bills and expenses. Instead of living paycheck-to-paycheck, you create wiggle room in your budget. In addition to having the money for vacations, an occasional night out and necessities, you can budget for the future. Some of the key savings goals to include in a future-minded budget include a better home, car, college or career training, medical costs and a general emergency fund.
Whether you have questions about credit scores, budgeting or debt consolidation, you can become financially savvy through debt counseling. At Christian Credit Counselors, we can help you get out of debt 80 percent faster than traditional methods.
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.