Mega Relief From Your Debt

Credit Management for Secured and Unsecured Debts

At times, it can seem like financial professionals speak an entirely different language. Unless you’re an expert yourself, it can feel like a losing effort to keep track of all the financial instruments with which credit card issuers, bankers and loan officials work.

Since you probably don’t have the time or inclination to pick up a finance degree, here’s a helpful briefing on the difference between secured and unsecured debts. You can also consult with a consumer credit counseling service to learn more about your debts.

Secured vs. Unsecured Debts

Since they’re “secured” by a physical asset like a home, car or boat, secured debts typically feature lower interest rates and longer repayment terms. By contrast, unsecured debts aren’t tied to physical pieces of property. Their interest rates are determined by factors like the size of the loan or credit line and the borrower’s credit rating.

What Is Collateral?

The concept of collateral is fairly easy to understand. When a borrower wishes to buy an expensive item like a car, house or boat, a lender issues them a secured loan that comes with a fixed or variable interest rate. In exchange, the borrower gives the lender the right to seize a valuable asset or “collateral item” in the event that he or she can no longer repay the loan. In most cases, the collateral item is the asset that the loan is being used to purchase.

Common Types of Debt

Common types of secured debts include:

  • Home mortgages
  • Auto loans
  • Home equity lines of credit
  • Certain types of business debts

Common unsecured debts include:

  • Credit card bills
  • Student loans
  • Medical bills
  • Collections accounts
  • Personal loans

How Can Consumer Credit Counseling Help with Secured Debts?

Many borrowers use a credit counseling service like this example not only to help them develop better financial management habits, but also to reduce the interest rates and fees on their unsecured debts. This makes it easier to make monthly payments on these debts. It also frees up budget space for borrowers who are struggling to afford secured obligations like car notes and mortgage bills. Over time, borrowers may find more room in their budgets for discretionary expenses and savings.

Get Out of Debt and Plan for the Future

Getting out of debt isn’t just good for your personal sanity. It can also help you plan for the future. Eventually, borrowers who use a credit counseling service may be able to start a savings account for the children’s college, plan for their own retirement or even start a new business. One thing is for sure: Having a little extra money to spend or save is a laudable goal. Contact a trustworthy consumer credit counseling service today to learn more about your options.

What Does Credit Card Relief Feel Like?

Excited after Finding Debt Relief

No more credit card debt!!

For those who see their credit card balances going up rather than down, it can be disheartening to look at monthly bill statements. Credit card debt doesn’t have to be something inevitable, constantly forcing you to put off major life growth. It can be solved.

One way to solve credit card debt is known as debt consolidation. This form of credit card relief is contingent upon consulting with an agency or organization, discussing your finances, income and employment status. You will pay a certain amount to the debt consolidation agency each month, and they will make monthly payments on all of your cards, loans and other unsecured debts until the amounts are paid in full.

Why Debt Consolidation Provides Relief

The key reason why so many people use debt consolidation is because it offers the chance to lower rates on high-interest credit cards and loans. The debt consolidation provider will negotiate with creditors and your interest rates will go down. This is because interest rates are determined by risk, and if you have a debt consolidation firm like Credit Guard backing you, you are more likely to pay back your loans. Therefore, your interest rates go down.

The debt consolidation company passes these savings onto you. Most of the time, you only have to pay less than or equal to the amount of money you already owed each month prior to signing up. However, you get the reduced interest rate and the consolidated payment for this cost, allowing you to easily pay off your debts sooner.

Not only that, but many debt consolidation providers also offer debt relief in the form of credit counseling. Credit counseling involves sitting down with a counselor and going over your personal finances. This encompasses everything from your personal budget to your credit cards, your income and your spending habits. You may also discuss multi-year financial plans for improving your station.

Getting a handle on your credit cards and finances is important if you want to get ahead in life, and a credit counselor can give you the tools you need to do just that.  Contact a professional debt consolidation service today to discover the wonderful feeling that is credit card relief.

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Credit Counseling Gets Results

When your finances seem too difficult to handle on your own, it may be time to seek help from a trusted consumer credit counseling service. Many people find that financial issues become too challenging, especially when unexpected debts or expenses come up. From medical bills to automobile breakdowns, there are many necessary reasons why you may have had to spend beyond your means in the past. This is why many of us go into debt.

However, the past is the past, and a credit counselor can help you move forward no matter how serious your credit issues are. Your counselor will work with your particular situation and offer concrete, immediate solutions.

Where to Find a Credit Counselor

You can find credit counseling providers in a wide variety of places, including online. Services range from online counseling centers to community organizations. A credit counselor often works in tandem with debt consolidation services and may be able to advise you on this effective way to get out of debt quickly.

What to Expect from a Credit Counselor

A credit counselor will not fix all of your problems overnight, but you will get a road map for how to handle your finances for the short, medium and long term future. It will begin with setting your budget in stone. A counselor will give you tips for saving money on things like groceries and bills as well as help you determine a realistic amount to save.

If your credit counselor works with a debt consolidation service, he or she will work with you to make sure that you can afford to pay off all your debts every month. Your counselor will also help you make a financial plan to prepare for large purchases such as college for the kids or retirement for yourself and your spouse. Finally, your credit counselor will give you tips and advice on how to analyze credit offers to figure out if they are affordable or not.

The education you gain from a session with a credit counselor will serve you well for your entire life. The results will be on-going as you make prudent financial decisions to help maintain a stable foundation for your family’s future.

Getting Debt Help Is Easy

Debt HelpAs Americans, many of us were raised with the notion that we need to take care of our financial problems on our own. However, with a slowly growing economy and a still-weak job market, many of us are feeling the crunch in ways that we’re not familiar with. There’s nothing wrong with reaching out for some assistance. If you have a family or if you’re supporting yourself, you owe it to yourself and your loved ones to get debt help.

Finding Help with a Debt Management Plan

Sometimes the best way to fix your problems is to work with an organization that specializes in win-win-win solutions. Through a customized debt management plan, you will benefit from lower interest rates and fewer monthly payments. The creditors will benefit from the assurance that they will get paid. And the debt consolidation agency benefits because it is doing a public service to help alleviate debt in the community. The first step to eliminating your debt is to find a credible debt consolidation service today and ask for their advice on how you can get the help with debt that you need.

Debt Consolidation for the Easy Win

It’s hard to imagine an easier solution than debt consolidation. Not only does the debt consolidator negotiate to lower your interest rates, they also make all the payments on your behalf. In return, all you have to do is pay an amount that is usually less than (or equal) to what you currently pay towards your debt.

The consolidation provider convinces each creditor to lower interest rates, passing on savings to you in the form of a reduced payment term. Instead of paying off your credit card debt in decades, you may be able to pay it off up to six times more quickly. It is estimated that the average American can save thousands of dollars over the course of paying off credit card debts or accumulated loans.

Not only does consolidation mean debt help at low risk to you, it also means a better credit score. You will be improving your debt-equity ratio as well as showing regular, consistent payments each month. If it sounds like consolidation is the right method of credit management for you, give a provider a call today.