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Signs That You Need Credit Counseling Debt Relief

Counseling Credit Debt Relief

Debt is the opposite of wealth. As long as you are in debt you will not be able to build wealth. If you are dealing with too much debt there are resources to help you deal with it.

Credit counseling debt relief can be a good resource for dealing with overwhelming debt or learning how to better handle your finances. Counseling credit & debt relief services are available through numerous resources, private or public.

How do you know if you should seek credit counseling and debt relief?...

Read the following list and be honest with yourself…no one is looking and you don’t have to raise your hand . See if any of these applies to you:

  • Can’t pay credit card statements in full - Nowadays carrying a balance on your credit cards seems as American as apple pie…that’s unfortunate because if you don’t have the money to pay them off it means you bought something you could not afford regardless of what you bought and why.
  • You spend more than you earn - If you bring home $2,000 per month, you cannot spend $2,010 per month. Sounds simplistic but many people don’t realize they are doing it (mostly because they don’t’ have a budget). And because they don’t, every month they dig themselves a bit further into the hole. Think about it, where is that extra $10 coming from?...either from credit or from your savings. So either you are borrowing that extra $10 or you are draining savings on a monthly basis to pay for overspending...
  • credit counseling debt relief

  • Can’t make the payments -can’t make the monthly mortgage/rent/car/credit card/student loan payment, period.
  • Can only make the minimum payment -The minimum payment is the reason why credit cards are so effective at keeping you in debt. If you only pay the minimum you are only paying off interest on the amount you owe and not paying down any principal. So then the interest keeps accumulating every month. At this rate, IF you don’t make any new purchases to the card, it would take years to pay off the balance!
  • Your debt increases every month - either because you only make minimum payments or because you keep on adding to your debt by buying more stuff.
  • Don’t know where your money goes - you got a paycheck, twice in a month actually, you saw it, you felt it but now it’s the end of the month and your account is close to $0 and have no idea where your money went…
  • Too much impulse buying - you know how this goes…you go to the store to buy “a quick little thing” and come out with $50, 100, 200+ worth of stuff…again and again.
  • Keeping up with the Jones…or the parents, brother, sister… - so your sister married a Wall Street banker and she invites you to go shopping with her... Or your parents sent you to private school so to please them you want to send your kids to private school even though you can’t afford it. There are many external pressures that can cause you to overspend. If so you need to identify them and plan how to deal with them.
  • Hiding stuff from your spouse - you spend money and for whatever reason don’t want your spouse to find out. Everyone keeps some things to themselves in a relationship but if you are going into debt while keeping it from your spouse that’s a much deeper relationship issue. You might need both credit counseling debt relief and some kind of relationship counseling.
  • You can’t see a way out - the unpaid statements are piling up in the dinner table, you add up all your debts (that you know of) and can’t possibly see a way out.
  • Considering bankruptcy - if for any of the reasons above you are considering bankruptcy then you absolutely need credit counseling debt relief. Bankruptcy can be the right solution for some but it is mostly a last resort option because its effects are serious and long lasting. There are numerous ways to get out of debt without bankruptcy.

If one or more of the above apply to you then it’s time to seek some form of credit counseling debt relief.

You can find multiple avenues of help. Some can be as straightforward as your church, community center, libraries, family center in a military base and local government family services.

Other options can be through paid services that specialize in credit counseling and debt relief services. They might be for profit or nonprofit organizations. Just be aware that there are numerous options here and unfortunately some of them can be scams. Take heed of this warning from the Federal Trade Commission:

”…be aware that, just because an organization says it's "nonprofit," there's no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or urge consumers to make "voluntary" contributions that can cause more debt.”

If you do decide to seek this service be prepared to pay a reasonable fee. Many offer free initial consultations and should disclose very quickly if and how much they cost. Beware of any high fees up front or promises to “repair your credit” or “eliminate your debt”.

The most important thing is that you don’t fool yourself to think you don’t need help. Don’t ignore the signs and seek credit counseling debt relief now rather than later.

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