While there are a million different ways to get into debt, there are only a few prudent ways to get out of deep debt. Receiving debt counseling is a positive way to learn what you can do about nagging debt. One of the keys to preventing future debt is to figure out reasons you fell into debt in the first place. According to an article by credit.com, there are 5 common reasons people fall deep into debt. With debt consolidation, you can achieve a debt-free lifestyle. With the knowledge you gained when receiving debt counseling, you’ll avoid backsliding into debt. Each month you get one step closer to a debt-free lifestyle as you make a Debt Management Plan payment to your creditors. Put yourself on financial autopilot with an Automatic Pay System through a reputable credit counseling company such as Christian Credit Counselors. As your debt quickly disappears, consider how you can adopt better financial habits.
You stop treating credit like cash
According to credit.com, many people with debt use their credit cards as if it’s cash. If you can’t carry cash around with you, use a debit card. Keep most of your money in savings, but use the overdraft protection feature just in case you forget how much you have available to spend in checking.
You stop spending to impress others
Many people who receive debt counseling realize they overspend just to impress friends or family. As soon as you change your thinking to equate success with paying off what you owe instead of impressing others with your things, you prevent future credit card problems.
You learn to separate wants from needs
Another common reason people get into credit card debt is they have a hard time differentiating wants from needs. Your credit counselor will help you set financial goals and figure out your priorities. One major priority is getting out of credit card debt. A Debt Management Plan makes that easy.
You take responsibility for your money
Although most people don’t take a personal finance class in high school or college, it’s never too late to become educated. Some of the resources offered by Christian Credit Counselors include free financial education class online, locally and by phone. Whether you want to create a successful budgeting system or understand credit scores, there are classes available.
You prepare for the worst
It’s always good to hope for the best, but you need to prepare for the worst by having an emergency account. People who stay out of debt tap their regular savings accounts and then their emergency accounts. Some people even have back-up emergency accounts for various issues such as cars, medical and job loss.
At Christian Credit Counselors, we work hard to help our clients get out of debt and stay out of debt. By consolidating your debt, you’ll be blessed with a lower interest rate and faster payoff time.
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.