According to an American Household Credit Card study conducted in 2017, Americans are under a cumulative total of about $905 million debt, an 8% increase from last year’s amount. Of that debt, households up on average $131,431. As a result, many Americans are paying huge amounts in monthly credit card payments along with a hefty percentage of interest, a combination that causes undue financial stress.
Whether it is because of an unexpected loss in business or simply a habit of overspending, there may come a time in your life when you find yourself surrounded by a sea of debts that seem to never go away or be paid off no matter how many payments you make. Being caught in such a financial mess can cause you to become overwhelmed. Luckily there are ways out of this, and one way is through a credit counseling and debt management program.
What Is Debt and Credit Counseling?
- Reduce your total credit card payments up to 30 – 50%
- Lower credit card interest rates
- Avoid bankruptcy and damaging your credit score
- Consolidate your bills to get out of debt faster
Just as the name suggests, credit counseling and/or debt management programs involve merging all your unsecured debt accounts into a cumulative debt amount with a relatively lower interest imposed upon it. Certified Counselors will work with you to negotiate lower interest rates on your credit cards and allow you to make a one-time payment monthly toward your creditors versus having to make multiple payments each month. They can also help consolidate your medical bills and other unsecured debts.
How Can I Get Debt Relief?
For someone who has never consolidated their debt before, it may seem a bit risky and daunting. Credit counseling and debt management services can help you find debt relief through consolidation and negotiating your debts. They are available to help you get your finances back on track in no time. Services, like Debt Response, work with your information to pair you with debt and credit counseling providers that are reputable and can find solutions for you.
In the end debt counseling can be a great solution that doesn’t involve just making more money to offset your debt. You could see lower interest rates and relatively lower monthly payments without affecting your credit score. Check out Debt Response to see how they can help you.
