Why Bother With Debt Consolidation Credit Counseling?
Ask anyone who’s done it and they’ll tell you that debt consolidation credit counseling has helped them change the way they think about debt. Most people think in degrees of debt, telling themselves that as long as it’s manageable, their debt is not a problem. But how true is this? With the costs of basic necessities like gas, milk, and utilities increasing almost daily, many people are finding they’ve got less money available to put towards paying down debt.With interest continually compounding, paying only the minimum amount due each month is how most debt suddenly spirals out of control. If you’re at or near this point, you’ve got to rein in these escalating costs and you’ve got to do it fast. That’s exactly what debt consolidation credit counseling helps you do.
Where do I go for debt consolidation credit counseling?
It’s never a good idea to seek help with debt consolidation without also obtaining credit counseling. That’s not usually a problem because most places that offer debt consolidation services also offer credit counseling. It makes sense that the two go hand-in-hand since even the most determined effort at repaying debt will be futile if bad habits are allowed to take over again.
You may also wish to check with your local government as many offer free or low-cost debt consolidation credit counseling services to residents.
What will I learn during debt consolidation credit counseling?
Debt consolidation credit counseling sessions typically begin with an overview of your current financial situation. This involves looking at your total income, your total liabilities, your saving and spending habits and your credit history and scores. This provides a snapshot of your current financial situation and it helps counselors determine where counseling efforts should be focused.
Debt consolidation credit counseling sessions also teach people the importance of understanding where their money goes. This is usually as simple as keeping track of every single penny spent for a full 30 days, regardless of what it’s spent on. People also learn how to categorize their expenses and that’s an important first step towards putting together a budget.
Learning how to budget and how to stick within a budget are both important components in keeping spending under control. Debt consolidation credit counseling helps people realize that they need to stop relying on credit cards when funds are low. In fact, the importance of putting all but one credit card out of reach is also discussed during this type of counseling.
Time and again, a common refrain heard during debt consolidation credit counseling sessions is that, “I need my credit cards for emergencies.” Unfortunately, everyone has his or her own definition as to what constitutes an emergency. So counseling helps people understand why building up their savings account balances is a better way to be prepared for emergencies.
Don’t wait any longer!
It’s important to get involved with debt consolidation credit counseling before your debt spirals out of control. Believe it or not, it doesn’t take long for that to happen!