Free counseling is available to people that cannot afford it. Non profit credit counseling and debt consolidation are the two main focus points. The first main function of non profit credit consolidation is very important because many people will have different credit cards and even other debt. You must keep up with everything thing you owe what day its due, and what the payment is.
Debt consolidation will work with your creditors in order to reduce your interest rate and lower your monthly payment. They will consolidate all your debt into one simple payment. Much of your financial stress comes from having all this debt and how much work it takes to manage it. When you are struggling to manage your debt, the benefit of having one simple payment sounds great. I like to call this the snowball effect, rolling all your debt into one payment and it dwindles down with each payment made. The second function from nonprofit organizations, is credit counseling, because we all know getting in debt can be very easy.
I like to tell people never borrow from Peter to pay Paul. Do not take one credit card to pay off another, pay attention to your interest rates as well as late fees. You want to make sure this never happens again. For example, never use your home equity to save yourself, because two to five years down the road you will find yourself there again. Lenders love to take your equity and lend you more money, You have to be smarter than them. 15 to 20 thousand dollars sounds great anytime of the year, but can you afford that? First of all never try to live beyond your means. If you only make 2,000 a month, you know you can’t afford to exceed that. First, we have to make sure we have enough money for lights and food, and house payment or rent. These are your top priorities. If you have children they have to have clothes, so never get above that. Don’t buy the best system at The Woodlands Home Audio place if you haven’t paid your other bills yet. What this all boils down to, is creating a budget, sticking to that budget, and if you have a few dollars left over put it in a savings account. Spend your money very wisely. This will keep you from falling into a situation , that puts you in debt.