Debt Counseling and Christmas
Most people love spending money on their family and friends, wrapping presents with shiny bows, and watching their expressions as they open gifts. However, Christmas is a bittersweet holiday for people with excessive credit card debt. By seeking debt counseling before or after the holidays, you take control of your holiday credit card debt.
According to an article in the Huffington Post, many shoppers experience a shopping hangover after major shopping days such as Black Friday. Even if you shop on major sale days, you don’t get ahead by using credit cards if you can’t pay them back. Revolving credit card debt is at the highest level it has been in several years, according to the Federal Reserve. Debt counseling gives you an edge so you start the New Year on the right path.
Credit Card Debt Repayment
If you can only afford to pay the suggested amount due or minimum due, you will benefit from debt consolidation. By receiving debt counseling, you find out how to budget to pay back all of your credit debt as well as monthly bills and expenses. With a debt repayment plan, you figure out how to get out of credit card debt for good.
By consolidating debt you pay off credit card debt and satisfy your creditors. If you take a different approach such as using a balance transfer credit card, you could end up running up even more credit card debt. Debt counseling helps many consumers overcome the temptation to keep putting items on credit instead of setting the credit cards aside.
Credit Counseling and Your Finances
If you just want a short-term fix, pay your minimum balance or transfer credit card balances to a new credit card. However, experts say most credit cards charge a 3 percent transfer fee. Also, paying the minimum amount doesn’t lower your interest rate. A credit counselor helps you actually lower the interest you pay on your credit card debt so you pay it all off in less time. A long-term fix is about examining your spending habits, learning how to boost a credit score, and budgeting. Many consumers fall into traps. You can change your spending and savings habits with a few simple personal finance tricks.
Although the holidays are all about giving, it is a good time to treat yourself to debt counseling. With a proper budget, you can buy loved ones holiday gifts and avoid lingering debt.
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