About 42% of Americans increased the amount of credit card debt during the pandemic.
As the economy slowly starts to rebound, you’re going to need to dig out of a financial hole. Now, you have high-interest debt that takes years to pay off.
If you’re still struggling financially, you could face a low credit score, late payments, and collections calls from creditors.
Financial struggles impact your future, as your credit score determines your ability to get a home or a job. Consumer credit counseling services could help you manage your debt.
Read on to learn more about getting financial help for your credit debt.
1. Avoid Bankruptcy
The primary goal of consumer credit counseling services is to help you avoid bankruptcy. Bankruptcy helps you restructure your debt, but it stays on your credit report for 10 years. Bankruptcy filings are also part of the public record.
Consumer credit counseling services work with credit card companies to restructure your debt repayments. They make it more manageable so you have a plan without ruining your credit for years.
2. Negotiate Lower Interest Rates
Consumer credit counseling services advocate for your interests. Not only do they help you restructure your debt, they negotiate lower interest rates.
A lower interest rate means more affordable payments. You pay more money towards your debt and less towards a credit card company’s profit from interest.
3. Personalize Financial Plans
How would you like to have a roadmap to pay off your debt? That’s what credit counseling services do for you. They look at your financial situation and create a comprehensive plan.
Your payments are combined into a single payment, as opposed to paying several bills each month. It’s tailored to your specific situation and you can adjust than plan as your needs change.
4. Free Financial Education
Too many people don’t know the basics of personal finance. They also know that incomes haven’t increased while the cost of living increases.
The only way to bridge that divide is to take out debt. Credit counseling services educate consumers about personal finance, budgeting, and avoiding debt.
5. Peace of Mind
The American Psychological Association reported that about 72% of people felt stressed over their finances in the previous month.
It’s hard to manage your finances when you don’t have a plan and see nothing but bills piling up. It’s also scary and stressful to get collections calls.
Credit counseling services help you tackle these issues head-on. You’re able to have peace of mind and you can sleep well knowing you have a financial management plan.
Read More: credit debt settlement program.
You Need Consumer Credit Counseling Services
Consumer credit counseling services give you a partner to help you manage credit card debt. They keep you out of bankruptcy and you have an advocate working with credit card companies on your behalf.
You have a complete debt repayment plan. In the end, you have peace of mind knowing that your credit debt is getting handled.
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