Some adults who went through the Great Recession lost their jobs and homes, while others went deep into credit card debt. Because the economy tends to go in cycles, it’s likely the U.S. will endure another recession. By receiving debt counseling and getting out of debt while the economy is booming, you can better survive a job loss. According to recent article by The Motley Fool, the consumer debt belonging to an average American is on the climb again. The article cited the Federal Reserve’s data which revealed outstanding revolving credit debt now total about $882 billion, which is up from about $853 one year ago. Experts say people are using more of their disposable income pay for credit card and other consumer debt compared to last year. To free up some of your disposal income, talk to trained credit counselors with Christian Credit Counselors.
Treating your money with respect
When you treat your money with respect, you don’t waste it on high-interest credit cards. Instead of giving money to credit card companies, you strive to spend your money on your family, church and community. By consolidating your debt with a Debt Management Plan, you end up paying less of your hard-earned money toward interest and more toward the principal. In fact, even the term “disposable income” is misleading because your extra money isn’t something to waste or throw away.
Getting the help you need
Admitting you can benefit from debt counseling isn’t a sign of weakness as much as it’s a sign of wisdom. Some of the most successful people admit they don’t know it all, but surround themselves with people who are experts in various fields. Certified debt counselors can educate you about budgeting, improving your credit score and setting financial goals. To prepare for a future recession, you should save up at least 6 months worth of living expenses in an emergency savings account. Experts that worry about a prolonged recession recommend saving up even more.
Dealing with tight lending
One of the common side effects of a recession is tighter lending policies by banks. By getting out of debt and improving your credit score now, you’ll be more likely to get the financing you need for a home or car in the future. If interest rates go up, you don’t want to owe money on a high-interest rate credit card or other unsecured loans or debt. By entering into a Debt Management Plan, you won’t worry about fluctuating interest rates because you are on a reliable and predictable debt repayment plan.
No one wants to lose their job or business or experience a pay cut. However, many people dealt with financial challenges during the Great Recession. Be proactive by getting debt counseling while you have a job or the ability to repay your debt. At Christian Credit Counselors, our qualified team provides debt counseling with a non-judgmental approach. We have been known to help our clients get out of debt 80 percent faster than other 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.