Four Debt Consolidation Mistakes

adminChristian Credit Counselors, Credit Counseling, Uncategorized

Debt consolidation is a great idea to help manage your debt.  It reduces the multiple bills you have to pay into one payment that’s easy to manage.  Christian credit counselors knows these mishaps very well, and we inform our clients that making these mistakes is going to hurt them rather than help.

Debt Consolidation is not a Cure-All

While it does relieve some stress, your spending habits aren’t going to change.  Adding additional credit cards or loans because there’s free credit available is not a good idea.  However, people who live on credit cards and loans will do this and end up in more debt than they were previously.  You will have to change your spending habits to get out of debt, and we can help you shift your mindset so that it is attainable!

Cutting the Intermediary and Consolidating Debt

Depending on the company, consolidated debt can be expensive.  DIY debt consolidation sounds like the better idea, but if you don’t know what you’re doing, you can mess up your finances.  Our services are inexpensive and manageable.  You don’t have to worry about spending extra just to consolidate because we are educated and experienced in finding the best route for your budget.

Consolidating Debt isn’t Worth It

Not all consolidated debt forces you to pay extra money over time.  You will have to be smart in finding out ways to cut interest rates and lower the life of the debt.  That’s where Christian Credit Counseling comes in.  We know the ways to save money for our clients.

Your Consolidated Debt and Home Equity or Home Credit Line

Using home equity for outstanding debt doesn’t erase the problem.  It will make matters worse.  If you’re behind on payments, your home is at risk of being seized by the bank.  Using home equity when you are paying mortgage is more damaging.  Since you’re not a homeowner, you use the equity gained from the mortgage to cover the debt.  If you miss a payment or more, you are at the risk of foreclosure from the mortgage lenders and the consolidated debt company.  We will make sure all the pros and cons of this risk are weighted thoroughly.

Christian Credit counseling knows that getting out of debt doesn’t happen overnight.  We know debt consolidation makes it easier.  We also know that being debt-free is up to our customers.  We are here to assist you every step of the way.  Debt-free is a good thing to be financially.  For more debt consolidation info, contact us.