With mortgages, student loans, auto loans, medical bills and other debt, consumers often find themselves unable to meet their financial obligations. Add to this an unexpected job layoff or auto repair bill, and the financial ability to make ends meet becomes even more difficult. These situations can happen to anyone, but there is help out there. The important thing is that you know where to seek help for credit management.
Credit Counseling Services
There are many financial organizations that offer credit counseling services. These organizations help you manage your debts in the most effective way possible to put you on the road to financial freedom. You’ll be assigned a licensed and certified financial counselor who will help you overcome your unique financial challenges. Often, there are free consultations, and financial counselors identify your financial needs and help determine the best way for you to get out of debt. Depending on the amount of debt owed and your circumstances, it may be advised that you enter a debt management plan.
How a Debt Management Plan Works
On a debt management plan, your financial counselor will work with both you and your creditors to help get you out of debt in the quickest way possible. They will first work out a monthly budget that is doable. Then, they act as third-party negotiators and send out proposals to your creditors to lower interest rates, eliminate penalty fees and work out a monthly payment with their structured payment plan. You make one monthly payment to the agency that you’re working with, and they disburse the funds among your creditors. This ensures timely payment, convenience of payment and a way to get you on the path to financial freedom. In addition, most financial organizations only charge a small monthly fee.
Free Financial Literacy Classes
Many credit counseling organizations also offer free financial literacy classes for credit management. You can take advantage of classes on credit reports, money management, identity theft, responsible use of available credit and budgeting. Armed with more knowledge, you’ll be better equipped to keep yourself out of debt. You’ll also be given access to tools like financial calculators to figure out interest payments.
Depending on the financial organization you work with, classes may be offered in a traditional school location or online. Either way, it is an excellent opportunity to get savvier with your management of money. Knowledge is power, especially when it comes to your finances.Read More