Though you may gave gotten a credit card with the idea of building credit and alleviating the burden of bills each month, if the debt itself has become too high, and you’re also dealing with other mounting expenses from loans or medical bills, it might be time to consider the question: Is debt management a good idea?
The answer is, yes, of course! Trying to keep up with bills, struggling to get payments in on time, and dealing with rising interest rates all can mean that it’s time to face the problem head-on. Seeking credit counseling services and debt management is the next step on the road to financial recovery so that you can get your debt under control.
Credit counselors will work with you and credit card companies to consolidate your debt on unsecured debt. This means credit debt, but also medical bills, personal loans, and more. And one of the best reasons to get on board is that counselors will often work with your creditors to get a lower interest rate so that you’re not paying thousands of dollars in interest alone. Affordability is obviously the issue, and when a debt management program is calculated for you, the result is an affordable monthly plan so that you can pay off your debt in three to five years. Also, taking part in a debt management plan can discourage or end collection agencies from attempting to collect—and blowing up your phone!
The bottom line is that no one wants their debt to get so high that bankruptcy seems like the only alternative—and the truth is, it’s not. A debt management plan can help you get your debt under control and hopefully resolve any bad spending habits. Of course, this means making some lifestyle changes, which means no opening new credit cards during repayment, and only use cards for emergencies. The end result will be worth it when your debt diminishes, and your credit score goes up.
Credit counselors understand that no one sets out to be in debt. They are on your side and rooting for your success. Once you decide to reduce that debt, you’ll feel more confident as you move forward on your financial path.