Your Options for Credit Card Relief

Exhausted from Credit Card Debt

Exhausted by credit card debt?

According to Federal Reserve statistics, the average indebted household carries about $15,000 in credit card debt, which may cost hundreds of dollars each month to service. As a result, the chief concern among families is to reduce the overall debt load quickly. However, in many cases the family budget won’t allow for it.

One option for credit card relief is simply to pay the minimum monthly payments. This is not so effective due to high interest rates, which often swallow up thousands of dollars over the course of a loan. Another option is to take out another loan with a lower interest rate, but this can cause your credit score to go down, which could raise your future interest rates even further. A third option is to file for bankruptcy, but this is an extreme option that will have permanent negative impacts on your financial record.

If you’re looking for a safe, low-risk, effective option for credit card relief, debt consolidation may be the right path for you.

What Debt Consolidation Does

Consolidation is the official term for combining all of your debt service payments into a single monthly payment. You pay the consolidation service the amount of money for all your monthly debt payments and a small service fee, and the service (essentially acting as a middleman) pays the banks and other lenders for you.

Not only does this help you avoid forgetting to pay your credit card balances, but it also gets you lower interest rates. This is because banks determine interest rates based on risk, but if a debt consolidation company vouches for you, you are seen as a less risky investment. As a result, your interest rates go down and you pay off the loan much more quickly.

Benefits of Paying Off Loans Quickly

The chief benefit of paying off your loans quickly with a debt consolidation plan and credit counseling from a company like CreditGuard of America is that you’ll have the money to spend on something else. When you reduce your household’s debt, you reduce the amount in your budget you spend each month staying current with your credit card bills. This money can go towards savings for any one of a number of good investments such as a new business venture or a down payment on a house.

Get Out of Debt Now

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If you are one of the many uninsured Americans, you may have used your credit cards to pay high medical bills. This can leave you with several credit card accounts that have high balances, making it extremely difficult to make even the minimum payments. Unfortunately, this predicament is not a rare occurrence among the population.

The Best Way to Get Out of Debt

With many credit card bills to pay every month, you may be wondering how you are going to get out of debt. One way is to make use of a debt management service.  For instance, a company like CreditGuard of America can help you get out of debt.  Debt consolidation does not require that you go to such lengths as to place your house into a lender’s hands. It is not another loan, nor will debt consolidation re-structure your debt. Instead, debt consolidation helps you eliminate your debt in a shorter amount of time than it takes to reduce it on your own.

The Job of a Debt Consolidator

When you work with a debt counselor, the consolidator will work with all of your creditors to reduce the amount of interest that you will need to pay every month. This means that your balances could be much smaller. Rather than pay each of your creditors individually, you will pay one monthly sum that will be divided among creditors.

If you’ve been forced to make late payments and penalties and fees were added to your balance, your credit counselor can address this problem as well. The debt counselor will ask that these late fees and penalties be waived. This reduces the amount that you owe as a result.

Do not remain in this stressful situation. Get out of debt now with help from debt consolidation companies that will not only assist you in managing your debt, but will give you useful information in order to prevent running into this type of financial burden in the future.

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Credit Scores and Debt Consolidation

Your credit score has an impact on the interest rates you receive on different types of loans. By consolidating outstanding debts, you can help raise your credit score and get better interest rates on your existing loans. You can also improve your chances of getting good rates on loans you might want to take out in the future.  Having a good credit score is part of the way you ensure that a comfortable future stays within your financial reach.

How Debt Consolidation Improves Your Credit Score

Debt consolidation providers like Credit Guard help you roll up all your debts into one easy payment. In so doing, they can help to boost your credit score through two main ways:

  • The provider makes regular monthly payments to all your loans so you don’t forget.
  • The consolidation company negotiates with creditors to get you reduced rates.

Reduced interest rates are easier to pay, leaving you with more money to make sure that all your other necessities are paid for so you don’t find yourself in a spiral of debt. One important thing to note is that if a debt consolidation provider asks you to take out another loan they are not a real consolidation company. Consolidation providers pay off your debts every month, which shows consistent, reliable service and is a big boost to your credit score. A new loan can actually hurt your credit score.

Improves Debt-to-Credit Ratio

Your credit score is impacted by a number called your debt-to-credit ratio. The more debt you have, the higher this number is and the lower your credit score will be.

Studies show that not only will you save thousands of dollars in interest rate payments through debt consolidation services, but you will also be able to pay off your debts sooner. And when you pay down your debt quickly, your credit score will go up that much faster.

Receiving Help with Debt

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Like many across the country (and the world!), you may be struggling with ever increasing bills and constant calls from creditors.  An all too familiar scenario may be the same as thousands of other college students who slowly accrued debt through student loans and credit cards. For many graduates, finding a well-paying job immediately after college can be a challenge.

The stress of finding employment that will aid in the process of paying back loans and eliminating credit card debt sometimes seems to be the hardest part.  If you are having trouble keeping track of your bills and are facing enormous interest rates, you are in need of assistance. Let a debt counseling service like this one be the solution to your debt management troubles.

Debt Consolidation Programs

With no one to ask for help and with little knowledge of the best method to escape from debt, you can begin to feel overwhelmed. Get relief from this stressful situation by choosing a service that specializes in consolidating credit card debt. These services often offer not only debt consolidation, but also debt counseling.  This much needed feature will help prevent you from making the same mistakes when it comes to handling credit.

The qualified and knowledgeable staff of counselors will review your bills and establish a plan that will help you manage your debt. Debt consolidation counselors have the ability to contact creditors and negotiate lower payments, lower interest rates on balances and even get late fees waived. These are all great benefits of choosing a credit counseling service.

The credit counseling provided through the company can be very beneficial. You will learn helpful hints and necessary skills including how to make a personal budget, develop financial management skills and even how to manage your credit.

These services are designed to equip you with the necessary knowledge required to live within what a budget allows, manage finances and also put money into savings for the moment when you are prepared to make large purchases such as buying a home. Help to preserve your own financial future by choosing credit counseling services today.