Good Debt vs Bad Debt

When it comes to debt, there is good debt and bad debt because some debt allows you to achieve the goal of owning a vehicle or a car. Credit card debt becomes a problem when you can’t pay off the balance and pay more in interest than you earn from putting your money to work in other places. According to an article by, falling into debt is a snap, but getting out of it is a different story. By reaching out for help from a Christian credit counseling organization, you identify an easier credit card debt exit strategy. Many consumers find success with debt consolidation, a strategy that involves a debt management plan. Before you consolidate debt, your credit counselor helps you understand what brought you to the current situation. Understanding how you got into debt and how to break the debt cycle in the future gives you greater financial peace.

Thriving in a Credit-Driven Society

Experts with point out that we live in a credit-driven society. It is not surprising many people take on more debt than they can handle. Some pitfalls to avoid when obtaining financial assistance in the form of loans or credit cards include underestimating the cost once the interest rate kicks in. Also, you might deal with unexpected situations that cripple your ability to repay credit cards such as a job loss or illness. Other people live with a spouse or child’s financial mistakes.

Breaking the Debt Cycle

When you receive credit counseling, you receive help not only with debt consolidation to lower your interest rates, but also insights into what keeps people in debt and why it is so hard to break the debt cycle. One reason it is difficult to get out of debt on your own is because of penalties and interest. Your credit counselor goes to bat on your behalf to reduce the interest. Other challenges include the temptation to spend more because of lifestyle habits as well as a feeling of defeat.

Changing Your Financial Future

Experts say a great credit card exit strategy is to consider debt relief options including debt consolidation. Professionals assist you with a debt management program so you only have one monthly debt repayment to make. To avoid a negative debt cycle in the future, you pay bills on time and take on only the debt you can manage on your income.

At Christian Credit Counselors, we teach our clients how to use credit to help them get ahead and reach their goals instead of letting credit card debt destroy their dreams. With debt consolidation, you can simplify your finances and save money on interest as well as speed up your payoff date.

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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