Depending how you use credit cards, credit cards can haunt you for years. When you choose debt consolidation, you make a responsible move to clear away the financial cob webs. According to a recent article by lansingstatejournal.com, many people shy away from credit cards because they fear the temptation to run up debt. If you have already fallen into credit card debt, there is no reason to despair. With Christian credit counseling, you get a positive, fresh perspective on your financial situation. Halloween often sets up a chain of expensive holidays and occasions that lead to credit card debt. By being proactive with debt consolidation, you enjoy one monthly payment to satisfy creditors. To prevent a scary financial future, consider some tips to make credit cards work for you instead of against you.
Spending what You can Pay Back
Some people forget that credit cards are loans as opposed to a savings account spent without future consequence. Experts say it is psychologically and emotionally easier to spend with a credit card than it is to part with money. After enrolling in a debt management plan, think about using cash to get back into the habit of spending only what you can afford to spend. When you get a credit card again in the future, pay in full each month just as you pay your debt consolidation loan on time.
Saving Money with Grace Period
Another important thing to remember with a credit card is the grace period. Typically you have 30 days to pay the bill before you owe interest. If you accumulated thousands of dollars in debt on several credit cards, it makes financial sense to consolidation your debt so you can lower your interest rates across the board. With the help of a trained credit counselor who goes to bat for you, you will pay less money in interest charges. In the future, you can pay during the grace period to avoid any interest owed.
Boosting Your Credit Score
After consolidating debt and paying back what you owe, you will likely notice our credit score improves. When you max out the available limit on your credit card and pay only the minimum owed, your credit score suffers. It is important to understand that credit cares provide revolving lines of credit.
With major holidays ahead including Thanksgiving and Christmas, celebrate the season by sharing frugal homemade gifts and sticking to cash. Meanwhile, debt consolidation will get you on the right path in the New Year. At Christian Credit Counselors, we don’t want our clients to feel haunted by their past financial purchases. For more information on debt consolidation, please contact us.
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