Many people get confused when it comes to debt consolidation vs. debt settlement scams. Your credit score is often decimated and destroyed by debt settlement as well as bankruptcy. According to a piece by, how you consolidate your debt is the key to improving your credit score. Some people make the mistake of shuffling their debt around from one card to another card. Doing the shuffle might temporarily lower the amount you owe in interest, but often leads to more credit-card debt. A better idea is to work with a credit counseling company to start working on a Debt Management Plan. Trained credit counselors at Christian Credit Counselors can help you on different levels.

Improving your credit score

Because you are learning better financial management skills, your credit score will most likely go up after you receive credit counseling. Moreover, your will be paying back all of your creditors instead of neglecting your financial responsibilities. If you have maxed out your credit cards, it’s not too late to get the help you need so your credit score can recover. The slow and steady approach can often lead to better results in the long run.

Making it easier on your

One of the nice things about receiving help from a Christian credit counseling agency is that they will lift the burden off of you. They negotiate a lower interest rate on your behalf. Although you do pay a monthly payment, the agency then disperses the funds to your creditors. Having to remember just one consolidated payment simply makes life easier for you.

Having a more promising future

As points out, once you have less debt because you have completed your Debt Management Plan, you’ll have stronger credit. In fact, experts point out that people with high credit scores tend to keep low balances on their credit cards. When you decide you are ready for credit cards in the future, you’ll know exactly how to use them so you are happier.

Some people wonder why they need a good credit score if they are going to pay off all their debt and pay with cash instead. Most people want to afford to buy a home or a car. If you have a good credit score, you’ll get a more attractive interest rate on an auto loan or home mortgage. With the high cost of leasing an automobile and renting an apartment, it makes financial sense to finance some big-ticket items.

At Christian Credit Counselors, we can help you start over with a Debt Management Plan that is doable and realistic. Our credit counselors will teach you everything you need to know about responsible lending, improving your credit score and budgeting.

Do you want to know more about debt and how you can make smart financial decisions now that will help you secure a more prosperous financial future? Sign up for our newsletter for monthly money tips.

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