In these tough economic times, millions of Americans are in need of a proven way to get relief from their unsecured debts like credit cards, store charge cards, medical and doctor bills, unsecured personal loans, etc. High interest credit card debt, in particular, is a real problem for consumers in Michigan as well people all across the country. The bottom line: credit cards offer a convenience and they can even be a help in tracking your expenses. But, when you begin to use credit cards without a clear picture of how and when you are going to pay for purchases -- your finances, and peace of mind, can really start to suffer.
Debt Relief from Credit Counseling
There is some good news for those who have fallen into the debt trap: If credit card debt has taken control of your life and have caused you undue stress both mentally and emotionally, there is help on the horizon. In fact, there are a variety of debt relief solutions that can not only help you reduce stress, but potentially save you thousands of dollars as well. One of the more popular and proven methods of debt relief is by using the service of a credit counseling agency.
Credit Counseling Services
It's simply a sign of the times that consumers in Michigan and many other cities nationwide have been hit hard with the recent debt crisis. As a result, more and more individuals have found themselves deeper into debt, and are struggling just to make it day to day. The good news is, there are many credit counseling agencies - including non-profit companies, for-profit debt relief agencies, and Christian credit counseling services that can help you better take control of your finances, reduce your debts on an accelerated timetable, and help you get on the path to become debt-free.
Regardless of the credit counseling you choose, it's very important that you understand how it works, how long it will take to significantly reduce debts, and the savings that you will get. Once you have a good understanding of how credit counseling works and what services are offered, you can go on to the next step of choosing a credit counseling agency with a good Better Business Bureau (BBB) review, a relatively strong record of few if any complaints and timely response to those complaints, and a proven track record of truly helping clients get out of debt.
How to Consolidate Debt with Credit Counseling
For some Michigan residents, debt relief may come in the form of a debt management program, or what some often refer to as a debt management plan (DMP), which is typically offered by credit counseling agencies and debt management companies. Under a debt management program, your unsecured debts - for instance, credit cards, department store, gas cards, medical bills and even utilities - may be consolidated into one monthly payment that will made to a credit counseling agency. In summary, unsecured debt is debt that is not secured by real property, such as your home or a car.
Once your credit counselor has all your financial information on hand, he or she will make proposals to each of your creditors on your behalf. These proposals can benefit consumers as they can reduce interest rates, eliminate late fees or penalties, and even provide more favorable repayment terms. Becoming part of a debt consolidation program coordinated through a credit counseling agency typically provides a more affordable repayment plan for you -- one that you can adhere to every month and one that is more comfortable for you and your family. With a new repayment plan, you will make monthly payments to your credit counseling agency who will then distribute those funds to your creditors.
How Credit Counseling Helps You Get Out of Debt
A debt management plan is a proven method of debt relief as it offers a structured and more affordable repayment plan that disciplined consumers are able stick to every month. And, because debt management plans normally require the consumer to stop using their credit cards, the consumer is not likely to accumulate new high-interest charges. Thus, they are able to have more money available to help pay down their existing debt. Sure, making minimum monthly payments on credit cards is important to help maintain a credit rating, but it will do little to help you pay down your debts at an accelerated pace. In many cases, consumers who only make the minimum monthly payment take as long as 10 to 20 years to even pay off the entire debt amount -- if the ever do. However, with credit counseling, a manageable repayment plan, and commitment to stop accumulating new charges, many consumers have the opportunity to reduce debts rather quickly, many becoming debt free in as little as three to five years. The bottom line: credit counseling provides an opportunity for consumers to get out of debt on an accelerated timetable -- and if the plan is followed diligently, many consumers are pleasantly surprised at just how fast they can reduce debts.
Will debt relief help you? How Much Could You Save? Get your free debt relief evaluation and savings estimate today.