Debt is an extremely sensitive and growing concern of many individuals and families in today’s society. When owing lots of money, many people search for debt settlements or fold and file for bankruptcy – both of which can heavily affect your credit score.
Although these may seem to be the only options you can make in a desperate situation, there is actually one method that can be difficult but is rewarding: debt counseling. Through this method, you will work with a counselor to create a personalized plan to beat your debt. In some cases, a debt management plan can be arranged, allowing you some breathing room to pay off all that you owe.
This method is one of the more helpful methods of clearing debt, but only if done under the right circumstances and with all your effort. In this article, we will share with you three circumstances where the assistance of a debt counselor is helpful:
1. When you can’t make minimum payments
Debt becomes extremely staggering when you can no longer make minimum payments. The difficulty would be doubled when face with unsecured debts—loans with no collateral involved, such as credit cards—as the interest rate tends to be at an extreme amount. If left unchecked, then your debt will only keep on compounding, often going to unmanageable rates. This is where a debt counselor comes into the picture.
With their expert advice, you can cut on some costs through some lifestyle management and smart budgeting. If necessary, you may also need to think of selling some of your possessions to get enough so that you can get through the coming months. In more extreme cases, you can seek to apply for a debt management service. With the help of your counselor, you can completely rid all the money you owe with a strict budget plan.
2. When you need professional advice
It is no shame to approach a debt counselor for advice with your finances, especially if collectors have been hounding you. Debt counseling is often useful to help you plan ahead and manage your situation more wisely, especially if you aren’t able to do so yourself. Learning from the previous experiences and cases of counselors can give you some leeway to negotiate and have some hope in an otherwise dire predicament.
With the help of a debt counselor, you can figure the best path of approach to tackling your debt. You won’t only find some much-needed support, but you will also have the confidence to keep living out each day.
3. When you want to make a change
Before you’re crushed in debt—or if you find yourself nearing that stage—going through debt counseling can actually make or break your future. Going into a more active position in finding ways to avoid debt is what counselors truly want, as this would be easier to achieve with the right mindset. If you want to change your lifestyle into one that won’t lead to you owing money, then debt counseling is your best bet.
Being under debt is a serious predicament, but it is not entirely hopeless. Before going into debt settlement or filing for bankruptcy, find all your available options by consulting with a debt counselor.
Are you in debt and considering taking a settlement? We are a non-profit debt counseling service in Florence, Kentucky, that aims to get you out of debt without hurting your credit scores. Get in touch with us and schedule a free consultation today!