by admin | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
Today, the average American has more than a single credit card. This coupled with the American lifestyle of “gotta have it now” has led to a lot of problems. Specifically speaking, it has led to a lot of debt. In fact, in many cases, the debt has gone out of the control and individuals have been forced to file for bankruptcy. Believe me, bankruptcy is something you’d want to avoid. After all, living at the mercy of others is never a good feeling.
Are you facing financial difficulty and pondering filing for bankruptcy? If yes then you’re not alone. Make it absolutely clear that your debt has got nothing to do with your personality or way of living. Even the very finest of people may go bankrupt at some point in their lives. Most people who suffer bankruptcy are regular, hard-working people who encounter some sort of blockade. A single blockade whether it was an accident, reduction in wages or the loss of job can send you in the wrong direction.
Come what may, you cannot prevent the aforementioned blockades. What you can do though is limit living on credit. Your debt will start to multiply as soon as you start using your credit cards to pay for what you can’t afford. Eventually, your debt will cause you to go bankrupt. The best thing you can do to prevent such a situation from occurring is avoiding the things that lead to bankruptcy in the first place. Following are 3 tips to avoid bankruptcy that credit counselors recommend.
Develop a budget
This is a no brainer. If you don’t have a budget, there is a 90% chance that you’ll go bankrupt. Basically, you need to list down all your monthly expenses and allocate resources/money to them based on their importance. Limit the money you spend on unimportant things such as home décor, branded clothing, designer shoes, and so on. This will help you to better manage your debt and avoid bankruptcy.
Pay off your debt over time
If your debt hasn’t yet gone out of control, sit down and determine how much you owe. In such a situation, it is more than possible for you to pay off your debt on your own if you re-adjust your budget and use a debt management plan. Also, taking to a credit counselor would be a good thing to do in this situation.
Take help from credit counselors
As mentioned above, credit counselors can help you to better manage your debt. Additionally, they can advise you how to avoid bankruptcy. Knowledgeable people, credit counselors have a sound financial background and can tell you anything and everything you’d need to know about avoiding bankruptcy.
Bankruptcy is not a good situation to be in. Luckily, you can avoid bankruptcy by using the tips mentioned above.
by admin | Consumer Proposal, Credit Counseling, Credit Repair, Debt Management
Counselors act as mentors, guides, advisers, and teachers. Similarly, credit counselors can give you valuable advice and teach you the ways to manage/ lower your debt and improve your financial health. Credit counselors can help you to improve your financial situation even if your debt has reached the tipping point. For many people, financing an automobile or securing a home loan is extremely difficult. Know why? If you answered a poor credit rating then you’re a zillion percent right.
In order to determine whether we’re capable of making timely payments, creditors look at our credit history. A good credit history open many doors for you while bad credit closes most, if not all, of them. Generally, future credit offers depend on how a person uses his or her first credit card. If you make timely payments, your credit rating will improve and you’ll become an attractive borrower.
Generally, people with good credit rating pay lower interest rates than those with average or bad credit. In fact, in some cases, people with good credit may qualify for loans with low interest rates. Moreover, they don’t have to pay annual credit card fees. In short, over the long run, people with good credit can save thousands of dollars. On the other hand, people with bad credit will experience higher interest rates and get fewer future credit offers. The good thing is that people with bad credit can improve their credit situation by taking help from a credit counselor. Who are credit counselors and what do they do? Let’s take a look.
If you’re sinking in a sea of debt then a skilled credit counselor is person you need to approach. Through counseling and education, a credit counselor will help you to get rid of the piles of debt you’ve collected over the years. To help solve your financial problems, a skilled credit counselor will do the following things:
- Advise you about money and debt management
- Assist you in the development of a budget
- Provide relevant educational material
There are many reasons to take help from a credit counselor including:
- Reducing the debt amount
- Lowering credit card debt interest rates
- Consolidating loans into one monthly payment
- Eliminating late fees and additional charges
Taking help from a credit counselor is a sensible thing to do if you want to maintain a good credit score, reduce interest fees, get new credit or simply manage your finances better. Some of the services provided by credit counselors include:
- General budgeting
- Debt free planning
- Bankruptcy counseling
- Student loan counseling
Credit counseling is for you if you want to repair your credit rating, pay off your debt, or simply learn how to manage your finances better. Credit counseling can benefit you regardless of your age or income level so get in touch with a credit counselor right away to lower your debt and improve your financial situation.
