Top Five Indications That Debt Consolidation Programs Are For You

Dec 31, 2013 by

When looking at ways to tackle growing debt, consolidation is an important option to consider. More and more families are using debt consolidation as a way to pay off unsecured loans and credit cards because it provides a way to rebuild credit while paying off existing debts.

The main perk of debt consolidation programs is that they can reduce your interest rates. Lower interest rates mean that more money goes toward monthly payments, giving you the opportunity to pay off outstanding loans sooner. If any of these five indicators describe you, it may be time to give debt consolidation a second look.

  1. You’ve been turned down for a loan due to poor credit. The beauty of consolidation is that it is not a new loan, and it does not negatively affect your credit score. Instead, it helps you pay off your cards more quickly, improving your debt-to-credit ratio and pushing your score up.
  2. You have high interest rates of 20 percent or more combined with high balances, you could be paying hundreds just on interest alone. Debt consolidation reduces your interest rates so more of your money goes toward paying the balance of your debts.
  3. You owe more than $10,000 on credit cards, personal loans and store lines of credit. The five-figure range often feels overwhelming. When you consolidate your debts, you can rest easy knowing that you have a plan and a target for paying off your debt.
  4. You have multiple outstanding loans and credit cards. The more loans you have, the harder it can be to remember to make payments. Even if you have the money, forgetting a payment will hurt your credit score. Debt consolidation programs automatically make payments.
  5. You have hopes and dreams for the future. We live in a world where money is required to make dreams happen. The less money you’re spending on your debts and high interest, the more you can afford to invest in business opportunities, college education or home payments.

If you feel that you could use help getting out of debt, then debt consolidation may be for you. Over the years, this method has provided debt relief for thousands of American families, and it could do the same for you.

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How to Pay Off Credit Card Debt

Dec 13, 2013 by

Credit card debt is a fact of life. Most people have it, and in many cases it is perfectly understandable. Reasons for getting in debt include unexpected auto expenses, medical bills, job loss or money simply being tight.

Another fact of life is that you have to pay off your credit card debt. One way or another, the credit card companies need to get paid. You can make high-interest minimum payments on debt, or you can sign up for a debt consolidation service that lowers your interest rate for a small monthly fee.

While it is up to you to choose which works best for your family, keep in mind that with debt consolidation, some families have saved thousands of dollars over the life of their loans — more than making up for the small cost per month. They have paid off their credit card debt decades faster than if they had just continued making minimum payments.

How to Know if Credit Card Consolidation is for You

You should consider consolidating your debts if:

  • You want to improve your credit score
  • You have multiple credit cards and outstanding loans
  • You have high interest rates
  • You carry substantial amounts of debt

The Mechanics of Credit Consolidation

A consolidation company like this can help you with credit card debt because they get better interest rates than the average person. This is because high interest rates, for a lender, directly reflect the amount of risk lenders perceive. In other words, every time you pay high interest rates, you’re paying for people who defaulted on their debts.

Consolidation services provide a reduction in risk for lenders. If a company agrees to provide services, it is vouching for you and saying that you’re “good for it.” In return, your lender will give you lower interest rates on your current loans.

The other major mechanic of debt consolidation is right there in the name of the service: it consolidates your debt payments. You make single monthly payments to the consolidation provider, and the provider makes timely monthly payments on all of your outstanding loans so you don’t have to worry about forgetting a payment. So if credit card debt is overwhelming your finances, consider consolidating your debts today. You’ll be glad you did.

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The Importance of a Debt Management Plan

Dec 9, 2013 by

Make a Debt Management Plan

There are two main strategies taken by Americans when it comes to handling their debt. The first is to try to handle it as it comes — make payments when you can afford them and live like you’re just putting out fires and crises every month. The other strategy is to make a debt management plan.

The second strategy is far more proactive and more likely to be effective in achieving your ultimate financial goals. Whether those goals are to save for a comfortable retirement, have money to put your kids through school or start your own business, you need to make smart decisions in order to make them a reality by creating an efficient debt management plan.

How to Make Smart Financial Decisions

The key to making good financial decisions is to take a long-term view. Think about money in terms of opportunities rather than costs. For instance, while debt consolidation and credit counseling from a company like CreditGUARD might cost a small amount each month, the opportunity to get much lower interest rates, save potentially thousands and trim years or even decades off the time it takes to pay off your debts is more than worth the cost.

When you pay off debts, you find opportunities to expand your life in a different direction. A process like debt consolidation is also useful because it allows you to calculate exactly when you’ll pay off your debts for good. This will give you confidence when you’re making your debt management plan, as you know when you’ll be able to begin saving for your next financial venture, set up a timeline for when you’ll be able to make investments and prepare accordingly. The opportunity to prepare is perhaps the most valuable financial commodity there is.

Consider Your Credit Score

Your credit score is one of the most important numbers to your financial health. It determines your eligibility for numerous things including student loans, home loans and business loans. Even within the scope of eligibility, it determines how much you will have to pay in interest.

In some cases, your credit score may even affect your eligibility for a high-paying job. Savvy individuals will do whatever it takes to achieve or maintain sterling credit scores. Debt consolidation can help you improve your credit score by showing consistent payments each month as well as improved debt-to-credit ratio. So do yourself a favor. Contact a debt consolidation service and put together a debt management plan today.

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The Advantages of Debt Consolidation Services

Oct 11, 2013 by

debt consolidation can help

You discovered that it was difficult to make ends meet, so you resorted to using your credit cards to pay your bills. After years of doing this, you now have the hassle of two, three or even more credit card payments to make every month. You can simplify this situation with the help of debt consolidation services.

Consolidating your debts means you will no longer need to pay more than one payment per month. Your credit counselor will work on your behalf to find a low monthly payment plan, which will save you a lot of money in interest.

How a Debt Consolidator Works For You

The first action your credit counselor will take is to negotiate with your creditors. You and your counselor will determine how much you can comfortably afford to pay every month, and your counselor will take the offer to your creditors. Credit counselors have a great deal of experience with negotiating with creditors, so they know how to obtain an agreement that will be more advantageous to you.

If you’ve had difficulties making your payments on time, you may have had to endure some late penalties. In order to lower your balances, your credit counselor can ask that these late fees be waived so that you don’t have to pay them. With lower interest rates and balances, you will be able to reduce your debts in less time than it would take for you to do on your own.

What Debt Consolidation Means

After your debt consolidation service like CreditGuard has obtained agreements from all of your creditors, your debts will be consolidated into one. This means that you will pay your consolidator one monthly payment and your consolidator will disburse the money to your creditors.

If you continue to make only minimum payments, it could take you many years to become debt-free. Instead, try debt consolidation services today and get out of debt in much less time.

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Build Your Debt Management Plan Today

Sep 23, 2013 by

There comes a day in every consumer’s life when he realizes that it’s time to make a plan to manage his debt. Debt isn’t always a bad thing. In cases of student loan debt, it may be a stepping stone to a brighter future. Sometimes, a personal loan is necessary if you want to pay for a family member’s medical bills. Regardless of the reasons for debt, a debt management plan is a sound decision for any person who finds themselves in debt. Not only will it provide a step-by-step approach to solving the problem, it will also give you the peace of mind you need to move on with your life in other directions. Debt doesn’t have to feel scary. With a good plan in place, any amount of debt is surmountable.

Credit Counseling and Debt Consolidation

The first step to building a debt management plan with CreditGuard of America is talking to a professional. You can find professional credit counseling services that will match you up with a counselor who will go over your finances and help you come up with a plan. A counselor can help you build a budget, sketch out a several-year financial plan and give you confidence in your ability to get through it. Solving debt is just a matter of putting money toward it every month, but you need to make sure that your monthly finances can afford to do so.

One of the key tools of many credit counseling providers is known as debt consolidation. Consolidation involves signing up for an account and allowing all of your monthly debt payments to be paid on-time by the credit counseling service. Your debt payments will have lower interest rates, waived fees and be lower overall due to the counselor’s skillful negotiation with your creditors. This will help you manage your debt more quickly and save you a lot of money in interest. Many clients have reported savings in the thousands of dollars. Others have reported that their credit cards, which would have taken upwards of 30 years to pay, only took six years with debt consolidation.

With the twin tools of counseling and debt consolidation, you can build a debt management plan that will effectively bring your finances back into the green, allowing you to go on with your life and pursue your dreams without being concerned that your debt will prevent you from doing so.

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Consolidate Your Credit Card Debt Today

Sep 18, 2013 by

Credit cards are easy to run up, especially in times of need. But after a lot of difficult times, the balance on your credit cards can seem impossible to overcome. There is no shame in asking for a little help.

Debt consolidation may provide the assistance you need. It involves making just one low-interest debt payment instead of several or even dozens of high-interest payments. Debt consolidation services also include credit counseling so that you can get and keep a handle on your finances in the future.

People have reported savings of thousands of dollars in lowered interest rates, and many have paid off all their credit card debt up to six times faster than they would have if they hadn’t consolidated their loans.

How Credit Card Debt Consolidation Works

The practice and process of credit card debt consolidation with companies like this one is based on the fact that your interest rates are higher than those that would be given to a debt consolidation provider. They make their money by being able to pay significantly lower interest rates than you do on your debt.

The process goes as follows:

  • The debt consolidator calls the credit card company and asks for a much lower interest rate and waived fees. The credit card company negotiates and agrees.
  • The debt consolidator repeats the above process for every credit card you own.
  • The consolidation service makes an account for you. This account will make regular monthly payments on your cards in exchange for a low-interest debt service payment every month.
  • The difference between the low interest rate and your high interest rate represents the money you save by using debt consolidation.

It should be noted that not only will you pay less money per month on your credit card debt, but you will also see your credit score go way up as the payments are made on a regular basis every month.

Credit Counseling

In addition to the everybody-wins practice of debt consolidation, consolidators like Credit Guard also provide credit counseling to people who use the service. Counseling includes providing emotional support for financial difficulties, practical budgeting guidelines and tips, financial management lessons and more. For individuals seeking to improve their financial situations for the long term with education and best practices, credit counseling is the best way to learn how to do so.

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