Debt is part of our life. Most, if not all of us rely on it to support our needs – from education, investments such as a home or a car, to businesses and any other important purposes. When crisis arise such as an unexpected medical emergency, a sudden lay-offs, or when hit with a natural calamity, debt helps ease out our financial burden. When managed properly, debt can help us to progress in life. However, when debt goes out of hand it can become a huge problem that can affect our life negatively.
When debt goes out of control, credit counselling is one of the best solutions available. It effectively helps the borrower to properly manage his or her debt.
Do you currently have a huge debt? Do you want to know if you are a candidate for credit counselling? Check the following situations below.
The combined balance on your credit cards is over $10,000.
In the United States, a lot of people have credit card debt and their average balance is $6,194. If you have 2 credit cards, it is possible that you’re hitting that 10k mark on your credit and you should really get motivated to knock out that debt quickly, else you’ll lose your money to interest.
You have more debt on your cards now than you did 6 months ago.
This shows that you are not managing your debts properly. Your cards should lessen your debt as time goes by. If it’s the other way around, then you might need help from a professional.
You are not able to pay the minimum each month.
When you have a debt, the least thing you can do is to pay the minimum each month to get out of it faster. If you are failing with that simple responsibility, then you are a candidate for credit counselling. Remember, your goal is to make progress in paying your debt; therefore make sure to pay more than the minimum every month.
You don’t have savings.
It’s not enough that you make ends meet. You should have savings of at least 3 months of what you earn monthly so you are prepared for any unforeseen circumstances. Your savings will keep you from having more debt in the future. For more info on credit counselling, click here.
Credit counselling is a very helpful and effective tool whenever a debtor faces financial difficulties. This essential service assists consumers in debt management by negotiating with creditors to establish a repayment plan they can afford.
Credit counsellors are experts who can help you manage your debt and get out of it quicker. They know how much you can afford on the monthly payments, how many months it will take to repay the debt and if you are eligible for bankruptcy or not.
When your debt is in a bad shape, the best solution for your situation is through credit counselling. Credit counsellors can give you an unbiased, expert opinion about what you need to do to take control of your finances. They can recommend you the different solutions and teach you how to minimize things like credit damage.