People who keep high credit card balances often face challenges buying a home or simply living a stress-free life. According to a recent article by marketwatch.com, paying off your credit cards helps borrowers get into a new home in some cases. Fannie Mae plans to reward people seeking home loans when they pay off credit card debt. By consolidating debt with a debt management plan, you put yourself in a better position to buy a home as well as enjoy other hidden perks. Debt consolidation relieves stress for consumers as well as gives them hope and a positive direction.
Avoiding bankruptcy
Debt consolidation allows you to completely avoid bankruptcy. Declaring bankruptcy often destroys your credit for 7 to 10 years. Many consumers can’t get car loans, home loans or other credit for years after going through bankruptcy. When you sign up for debt consolidation with a Christian credit counseling company, you enjoy the satisfaction of knowing you paid your debtors instead of walking away from the obligations.
Relieving stress
In order to afford to pay off debt, you often make sacrifices or cut spending. Whether you change your spending habits or go out and earn more money, it’s often stressful. Once they get going with the snowball method of debt repayment through a credit counseling company, many people feel peaceful. A debt management plan that employs the snowball method pay off the card with smallest balance before moving to cards with larger balances. As you get closer to your target date for completing a debt management plan, your stress loan feels lighter.
Boosting your credit score
Debt consolidation is about putting all your credit card debt together for one monthly payment. A side effect is that your credit score eventually goes up. It will not happen right away, but one of the hidden benefits of debt consolidation is an improved credit score. Your credit score is a factor that influences what kind of financial interest rates you achieve. When you sign up for debt consolidation, you also receive overall credit counseling. Your credit card will likely go up when you learn the secrets for budgeting, financial planning and strategies for saving for the future.
At Christian Credit Counselors, we work hard to help consumers avoid bankruptcy. For help with debt consolidation and credit counseling, please contact us.
