Credit Card Debt Relief – Save Money by Reducing Debt

Posted by on Dec 30, 2013 in Debt Relief | 0 comments

If you’ve been looking for a way to start saving for the future, you should start by addressing any credit card debt you may have. By making only the minimum payments on your card, you’re greatly extending the amount of time it will take to pay them off. Not only that, you’re adding substantially to the amount of money it will take. This is doubly true if you’re missing payments and incurring finance charges along the way.

Make the Choice

Decide that you will pay a certain amount above and beyond the minimum payment necessity from now on. By doing this, you are engaging in a debt management plan that can help you begin putting money toward the principal of your balance instead of handing almost all of your money over to interest. Paying just enough to cover the minimum payment could mean making payments for the next 15 years. Do you really want your debt hanging over your head for that long? This will severely hamper the amount of money you can save, invest, and use towards preparing for the future.

Saving and Debt

Because saving and investing is so important for a secure future, many people start building their retirement accounts before they’ve addressed their credit card debt with a company like Credit Guard of America. It’s always a good idea to have some money stored in a drawer for a rainy day, but you should wait until your revolving debt is squared away before you start making serious investments. If you’re itching to start building a portfolio, let that drive you to eliminate your debt as quickly as possible.

Get Help

If paying your monthly credit card bills is already too much for you to handle, it may be time to seek help. Don’t wait until the company starts calling. And if they’re already calling, don’t wait until they decide to hand the account over to collections. Take action now to turn your finances around. Debt consolidation programs can help you get started. By providing credit counseling and working with you to develop budget management strategies and a debt management plan, these companies can put you on the road to credit card debt relief and financial stability. Start today, and find out just how good it feels to invest in yourself.

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Debt Help That Doesn’t Actually Help

Posted by on Dec 18, 2013 in Debt Relief | 0 comments

Not all debt is bad. There are a variety of expenses in life where debt is a normal means of financing. You might not be able to buy a vehicle or attend school without obtaining an auto or student loan for example. However, millions of Americans struggle with too much debt. If you find yourself in such a situation, don’t blame yourself for the predicament.

Instead, turn to a credit counseling service that can negotiate interest rate reductions and fee waiving with your creditors. Unlike the following debt “solutions,” credit counseling companies can provide real financial guidance and debt management support without forcing you to take on additional debt.

Home Equity Loans/Second Mortgages

Home equity loans and second mortgages require you to take on new debts to pay off older obligations. Not everyone can use these instruments: Both are reserved for homeowners who have built up sufficient equity in their homes. However, even those who are eligible to obtain home equity loans should avoid doing so. Like debt consolidation loans, they often come with high interest rates and can increase borrowers’ total debt loads.

Reverse Mortgages

A reverse mortgage is a special type of home loan that’s designed for older borrowers. The marketing that accompanies these instruments is often misleading, and many borrowers don’t realize that they’re actually high-interest loans. Like home equity loans, reverse mortgages reduce borrowers’ total equity while growing their outstanding obligations.

Personal Loans and Balance Transfers

Using lower-interest personal loans and balance transfers to pay off credit cards and other outstanding debts can seem like a good idea, but this strategy often has unintended consequences. Borrowers who transfer their balances and take out new loans can lose track of their obligations and may face unexpected delinquency notices or calls from collections agencies.

While these four strategies are often hailed as “solutions” for borrowers with heavy debt loads, they aren’t really ideal for folks who wish to reduce their debt. After all, each one requires the assumption of additional debt at moderate to high interest rates. If you want to lower your interest rates and improve your financial outlook, turn to a trustworthy credit counseling service instead. Credit counselors will not only provide you with solid financial and debt-related advice, but in many cases they can also help you devise a debt consolidation plan to help in simplifying and eliminating your debt burden at a faster pace than would be possible on your own. So do yourself a favor and contact a credit counselor today.

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A Better Future with Credit Management Services

Posted by on Nov 30, 2013 in Debt Relief | 0 comments

For those with excessive credit card or personal loan debt, a professional credit counseling service can provide a variety of useful strategies that will help eliminate harassing collection calls and restore the client’s good credit. A well-designed debt management plan includes a realistic budget and a negotiated debt solution approved by each creditor. If you are attempting to figure out how to get out of debt, look into debt consolidation companies like Credit Guard.

Positive Credit Impact

In addition to offering relief from debt-related stress, enrollment in a qualified nonprofit debt consolidation program can provide immediate benefits to your credit. Monthly payments in a debt management plan are structured in a way that encourages consistency.

There are two essential elements involved in credit score computation that are positively impacted by active debt management:

Payment History: 30-35 percent of a person’s credit score is based on payment history. Debt management programs are set up to encourage reliable, timely payments over an extended period, which will ultimately have a positive effect on payment history reporting.

Accounts Owed: 30-35 percent of this score is based on current accounts owed. Since the credit counselor can usually negotiate a lower balance with each creditor, the reduced amounts are often reflected in the credit report. As the accounts are paid down, the client’s credit score will continue to improve.

Debt Management Education Services
While many people enter a credit counseling program to reduce their loan payments and stop annoying collection calls, the primary benefit of debt management and debt counseling involves establishing a sound financial future. Clients learn how to create a viable budget and practice the fundamental techniques of successful money management.

Long-Term Benefits

Credit and debt counseling provides a blueprint and the type of structure required to conquer credit card and personal loan debt that is out of control. Debt counselors are trained to work with creditors to reduce interest rates, lower balances and help raise the client’s credit score. Combining all of the various debt obligations into one monthly payment simplifies the process and virtually eliminates the chance of a missed payment.

The different facets of a qualified debt management plan can affect your life in a very positive way. Aside from the money saved on accumulated interest, credit counseling can also help you feel optimistic about your debt situation. An approved credit counseling program will help you develop the discipline required to manage credit wisely so that you can cultivate healthy financial habits for your future.

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What Are Debt Consolidation Services?

Posted by on Nov 25, 2013 in Debt Relief | 0 comments

Credit Card on Money

Debt consolidation services, such as one from CreditGuard of America, can help you through a difficult financial time. If you’re concerned about your credit card debt or any other unsecured debt such as personal loans, medical bills or store credit, debt consolidation may be the way to go. The results are felt immediately, and they extend into long-term savings for yourself and your family.

Debt consolidation services involve giving an organization control over the regular monthly payments of all your credit card accounts. In return, you pay that organization an amount that is usually less than or equal to the total you pay for your monthly debts. The organization negotiates with banks or other loan providers to get you lower interest rates as well as waive any fees that may have accrued.

Short-Term Results

The short-term results of debt consolidation services are that you won’t have to worry about forgetting to make payments. This is especially useful for people with many credit cards, loan accounts and store lines of credit. Forgetting to make a single payment just once can cause your credit score to spike down, which may have a negative impact on future interest rates. You don’t have to worry about this with debt consolidation.

Long-Term Results

The long-term results of debt consolidation are even more lucrative than the short-term ones. The main two things you save using this process are time and money. You save money because of lowered interest rates, which reduce the amount of time you end up having to pay off the interest on your principal loan amount. While the exact amount of money and time vary for each person, many people have reported saving thousands of dollars after using debt consolidation. These savings result in paying off your loan 10 or even 20 years sooner than if you had just made minimum payments.

Another immediate result is that you may not have to pay bank fees that may have arisen due to late payments in the past. You could be operating from a clean slate with the backing of debt consolidation services. Finally, you achieve the immediate satisfaction of knowing that your finances are being handled using a process that helps tens of thousands of Americans get through their debt problems and come out on the other side. Whether you’re looking for immediate relief or long-term financial impact, debt consolidation services can give you what you need.

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Credit Management Makes for Effective Debt Relief

Posted by on Oct 28, 2013 in Debt Relief | 0 comments

If you’re in debt, you know that it can weigh heavy on your mind. Getting help may be a priority, but if you don’t know where to start, the process can be overwhelming. However, not only will debt relief do wonders for your emotional state; getting it sooner rather than later will save you many dollars in the long run. With the right credit management strategies, you can be smarter about how you’re managing your loans and interest payments so that you can save more money.

What Is Interest?
Interest is what you owe your creditors as payment for using money that you don’t own. The more debt you have and the higher your interest rate, the more interest you have to pay each month. This could rack up to thousands of dollars over the years. Your interest rate is determined by the amount of risk you represent to your creditor. If you have a lower credit score, your interest rates may be higher.

Debt Consolidation
A smart credit management strategy for achieving debt relief is known as debt consolidation. Consolidation involves having a service provider talk to your creditors to convince them to lower your interest rates. Debt consolidation companies have strong reputations and financial clout, allowing them to get much better deals on interest rates. Having to pay less interest means more money can go towards the principal of your debt, allowing you to pay it down faster and save more money in the long run.

Debt consolidation is a smart strategy because there is little to no risk on your part. If you have lots of debt, all you do is forward the same monthly amount that you normally pay to a middleman (in this case the debt consolidation provider). They then divide that money to cover all of your credit card payments in regular installments. It is not a new loan, so you don’t have to worry about credit score dings, and the payments can even increase your credit score. For a solution to debt difficulties that’s easy to understand, try debt consolidation and secure your financial future.

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