Debt Counseling When You Show Signs of Overspending

Jeanne McTaggartCredit Counseling, Debt

Debt Counseling

Some people use the New Year as a time to make positive changes such as overcoming overspending habits. If you show signs of having an overspending habit, it makes financial sense to receive debt counseling. With certified and trained credit counselors, it is simple to get your finances back on track. According to a piece by investopedia.com, most people do not solve their personal finance problems until they recognize they have a problem. When credit card bills pile up or you can only afford to make the minimum payment on credit cards, it is time to seek advice from professionals who deal with financial issues every day. A debt management plan is a simple way to get out of credit card debt quickly, but many consumers are not aware of the option to make one payment to all of their creditors. The right credit counseling agency negotiates for lower interest rates. If you aren’t sure whether you have an overspending habit, consider some of the signs.

Seeing the signs

Some of the signs of an overspending habit include finding clothes in your closet with the tags still attached. Ask yourself what you do with a pay raise. Do you increase your savings or allow your expenses to rise? If you can’t afford to fix practical issues such as an air conditioner or your car but own expensive luxury items, it’s another sign of money mismanagement. A positive approach for the New Year is debt counseling.

Filling the void

Instead of spending money when you feel bored or lonely, experts suggest finding other habits or activities. Choose free activities such as walking or watching television, but avoid commercials that tempt you to shop.

Consolidating debt

When you use your credit card to make purchase you can’t really afford, it often takes years or even decades. According to investopedia.com, a $500 impulse purchase could cost about $175 in interest if you paid the minimum balance. Once you consolidate debt with a debt management plan, you typically pay less in interest to save you money and accelerate the payoff process.

Other advantages of debt counseling include giving you a chance for openness about money with someone who is not personally involved in your family and personal life. A credit counselor helps you stay accountable by serving as a support system until you develop your own network and devise a financial plan and budget.

At Christian Credit Counselors, we provide debt counseling and advice on boosting your credit score and eliminating credit card debt. For more information on overcoming a spending habit, please contact us.

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