Debt Counseling



Debt Counseling – What It Can Do for You
Statistical reports show that nearly 80% of consumer expenses in the United States are on credit and the most convenient way to shop is to use plastic, or more popularly known as credit cards. Moreover, the average debt is more than $8,000 with a typical interest rate of 18.9%.

No wonder so many people are now heavily buried in debt. Along with it came lots of debt relief programs aiming to provide consumers effective ways out of debt.

Among the many debt relief programs available today, debt counseling is one of the most well liked programs, helping more than the average consumers who seek debt consolidations.

Find Your Hidden Money




When you sign up for loans, you pay them within a year, 5 years at most. Individual credit unions offer special loan rates that are beneficial to the borrower. A number of people consider signing up for credit union loans.

The features of a credit union loan are:
  • The insurance of the loan isn't a direct cost to the eligible borrower
  • There is an offer of repayment protection insurance
  • There are no hidden fees or transaction charges whatsoever
  • Repayments are calculated depending on the reducing balance of the total loan. Smaller interest repayments are relative on how frequent you repay your loan.
  • There is a variety of repayment loans to choose from, depending on the livelihood of the borrower.
  • It is so flexible that the borrower can repay the loan before due or he can make large repayments than what had been agreed on without any penalty whatsoever.
  • The additional lump sum repayments the borrower has paid will be accepted without penalty.

Control High Interest Debt

Your net worth is your assets minus your liabilities. Liabilities are debts. The more debts you owe, the lower your net worth will be. Plus whenever you have debts, you also pay for the interest, that’s why you lose more.

For practical reasons, it’s understandable why people borrow. Take for example; buying a car or a home, it’s hard to shell out cash for large expenses. That’s why debt is a tool that, when used wisely, can benefit the borrower. However, the borrower must comprehend that a debt is still a debt and must be paid in due time – with interest.

When people don’t manage their money well, they get in financial trouble. It’s a cycle. They run short of cash, that’s why they borrow. Then they’re not able to stick to a budget so they can’t pay the debt.

Create A Budget



Creation of a Budget
No man is an island. We all need help once-in-a-while. We’re not only referring to personal matters. We’re talking about financial matters. We reach a point where we have to buy something out of necessity, but we can’t pay in full just yet. An example of this is a home.

Now the time has come for you to repay on what you own. You must have the discipline to plan out how much you should have saved so when your time is up and you have to shell out the money you owed there and then (plus interest), you wouldn’t have a hard time doing so.

Prioritize which of the debts must be paid first. Prioritize your bills. Make a list so it will be more organized so you can see it right in front of you.

Exploring your own debt




How to take charge of your debts
 
The rising cost of living and dying has made people more reliant on loans and credit.  Most people have been indebted to someone at some point in their lives.  A debt is an obligation that should be paid and accounted for no matter how meager the amount.

Being in debt is normal considering that no one has a monopoly of all the money in the world.  People will always have the tendency to accumulate debts no matter how rich.  In fact, rich people have more debts than poor people because they have more needs and they have more collateral or security.