Debt Counseling to Get out of Debt on a Limited Budget

Jeanne McTaggartDebt, Debt Consolidation

Debt Counseling

Most people who seek debt counseling want to get out of debt but struggle with limited funds. If you had more money, you would likely pay off your credit card debt. According to an article by cheatsheet.com, most people would love it if their debt just magically disappeared. When you sign up for a debt management plan, your credit card debt doesn’t disappear but your stress often does. That’s because you finally have a debt repayment plan that is simply and doable. When you live in a tight budget, it helps to enjoy lower interest rates that come with debt consolidation. If you can’t afford to make extra payments on your credit cards, consider debt counseling to figure out solutions for you. Otherwise, all of your payments simply go toward interest. You end up treading water when it comes to your debt. Financial experts suggest 5 ways to get out of credit card debt with scare funds.

Start a plan

To get out of credit card debt, open yourself up to debt counseling. A credit counselor looks at how much debt you currently have as well as which lenders you owe money to. With a debt management plan, the plan is simple and straightforward. A credit counselor negotiates the payment plan with lenders so you get better terms and lower interest rates.

Make it automatic

The next step to getting out of debt on a strict budget is to set up automatic payments to your debt management plan. You make one monthly payment, which is easily deducted from a bank account. By putting your finances on autopilot, you have more time to devote to making money. An automatic payment plan takes away your excuses. All you need to do is focus on making sure there is enough money in the account, which means budgeting and planning.

Cut spending

Learning to live below your means takes a lot of practice for natural spenders who love shopping and buying for themselves and others. Cutting spending is common sense when you have limited money. Most people find places to cut by looking in the entertainment category. Think of ways to have fun that cost nothing. Focus more on the experiences you share with loved ones as opposed to material items you buy.

Change your habits

Another good tips is to adopt new financial habits. To become debt-free, you need to avoid situations that tempt you into overspending. If you buy impulse items at certain stores, go shopping with someone who will hold you accountable. Avoid driving past tempting coffee shops or restaurants if food is your weakness.

Seek help

According to the cheatsheet.com article, people who feel overwhelmed by their credit card debt benefit from debt counseling through a credit counseling agency. You can often get affordable or free advice as well as help setting up a debt management plan. Some possible solutions include consolidating loans and learning to follow a comprehensive budget.

At Christian Credit Counselors, we offer financial advice and help for consumers struggling with debt. Whether you have a high-paying job or a tight budget due to limited income, we can help you get out of credit card debt. For more information about how debt counseling frees consumers with excessive debt, please contact us.

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