Finding the Right Solution to Your Debt Problem Debt is a burden that many know but is difficult to understand for those who haven’t felt its weight. Sometimes it happens all at once like with medical bills or job loss. Sometimes it’s the product of months of unsustainable spending. No matter the circumstance, it can feel as though you’ve entered quicksand with no sign of sure rescue. Debt is not something that can be ignored. You may be dodging calls or delaying your response to collection letters. Perhaps you have maxed out your lines of credit and don’t know how you will cover expenses. Kno ..read more

According to the Federal Reserve Bank of New York, from mid-2019 through the first quarter of 2020, non-housing debt in the United States gradually increased to $4.20 trillion. Of that, $652 billion is considered delinquent. There are a lot of causes for debt, and with interest rates and penalties many Americans feel that their debt is insurmountable. If you find yourself feeling this way, a debt management plan may be a great option for you to consolidate debt payments, reduce fees and interest, and get yourself free from debt. What is a Debt Management Plan (DMP)? Nonprofit credit counselin ..read more

Financial Myth: Don’t Debt Management Programs Hurt my Credit Score? When entering our debt management program (DMP), keep repeating to yourself…”I am here to get out of debt.” Nothing worthwhile is ever very easy, including a DMP. For one, our program requires you to close all credit accounts that are on the program. This may even briefly lower the debt balance-to-credit limit ratio portion of your credit score. However, by sticking with the program until your debt is completely paid off, this short drop can pale in comparison to the potential credit score increase debt-free clients see at t ..read more

Do You Need Debt Consolidation? Debt Consolidation offers credit counseling clients a different and new approach to tackling their finances. Determining if a debt consolidation plan is right for you can take some time. Looking into the pros and cons now will help you know if consolidating your debt is the best move you can make. Pros Consolidated Monthly Payment – Debt Consolidation Plans consist of one monthly payment of an individual’s credit card debt and other unsecured debt. Instead of several payments that are sent out monthly the credit counseling agency will receive you ..read more

Consumer debt…how would I love to pay thee off! Let me count the ways… We live in a culture where the burden of consumer debt has not only become acceptable but even expected. Since the average household in America carries nearly $17,000 of credit card debt, a large percentage of American households are looking for the best way to pay off their debt. Here are descriptions of some of the most popular options: Debt Settlement Companies (or “Negotiators”) When credit card debt becomes overwhelming, too many individuals trust emails and ads that claim to help out by negotiating down the total bal ..read more

How To Improve Your Credit Score in 2020 This guide will help you know what a credit report and score is, how to review your credit report, tips on how you can improve your score and information regarding how to dispute discrepancies you may find on your credit profile. We encourage you to read every section as they provide useful information. However, if you are looking for a specific answer, follow the links below: Building A Better Credit Report Tips for Strengthening Your Credit Score Basics of Maintaining or Rebuilding Your Credit What is a credit report and how is it used? How are we, t ..read more

Carrying Credit Card Balances I have some friends that live nearby who were looking a year or so ago at buying the home they were renting. I had the privilege of sitting down with them for a couple of hours to review their finances and their credit in hopes of helping them understand what it takes to set up a strategy to get them to the point of qualifying for a home loan. Yes, like many households, they had a few outstanding debts and a number of overdue accounts. Of our discussion that night, what floored me most was not their situation but what their mortgage broker had suggested: open two ..read more

Seriously, who really cares about your credit? The article title might be a bit facetious, but it does not diminish the importance of the answer. Your credit rating can affect many aspects of your life, often in unexpected ways. Keeping track of who is looking at your credit and why can help minimize the negative consequences attached to poor credit or, worse, identity theft. That said, I am no proponent of being credit obsessed. Fixating on the minutia of your credit, which I have seen evidence of many times over my years as a financial educator, can actually lead you to building credit for c ..read more

What to Think About When Considering a Payday Loan As summer heats up, quite often so does our spending. From big vacations to day trips to the water park, from new grills to furnace repairs, or from shopping for back-to-school clothing to having to replace the cell phone we just dropped into the neighbor’s pool, summer can be filled with expenses that are unexpected and/or unscheduled. At such times, it might be tempting to run to the convenient lender of your choice: payday loans, title loans, pawn shops, or even rent-to-own stores. Each of these options charges substantially more money for ..read more

If you have thought about consolidating your debts but heard how difficult it can be to qualify for a debt consolidation loan or even a credit card balance transfer if you have less-than-great credit, you may be discouraged wondering what someone with bad credit can do to consolidate their debts. How do you consolidate your debts if you have bad credit? Individuals and couples who have a poor credit rating may struggle to qualify for a debt consolidation loan or a credit card balance transfer offer. However, they can still take advantage of a debt consolidation program through a nonprofit cre ..read more