Today’s post is by Stewart Bradley. He is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. Though he holds his expertise in the Debt industry and has made significant contribution through his various articles, he has interest in budgeting, mortgage, insurance, short-term loans, investments, credit advice and more.
Are you someone who is looking for a way to cope up with your soaring debt obligations? Especially if you’re aged between 18 and 25, you need to take utmost care of your finances so that you don’t let the soaring credit card debt burden take a toll on your financial records and on your credit score. If you’ve started incurring debt but if you’re still not in the red, you can take help of the credit counseling agencies as they’re the ones who can let you repay your debt burden through effective budgeting and personal finance management.
However, if you’ve incurred a huge amount of debt and you’re not able to cope up with the sky-high interest rates, you can take help of the financial services through which you can combine your debts into a single monthly payment and repay them through a stipulated period of time. Being a young adult makes you even more vulnerable to the financial scams and hence you need to know a lot on such programs. Here are some facts to consider.
1. It’s a third-party payment system: Are you tired of juggling among different accounts? When you opt for a debt management plan through a credit counseling agency, you have to make a single monthly payment to the company instead of paying them in full. The payments will be stretched throughout a certain period of time and therefore you can conveniently manage to repay your bills. You have to make your payments to the company and they will disperse the funds to the creditors. Since you require making a single monthly payment, the stress remains low enough.
2. The debt consolidation agencies may differ in quality: With something that is as precious as your personal finances, you should be exceedingly careful about which company you work with. Look for the non-profit debt consolidation companies so that they offer you genuine professional help while helping you get out of debt. You should check the fee structure of the company, the way in which they report the credit bureaus, the interval within which they make payments to the creditors and the way they approach you. It is better to get help from the agencies that have your best interest in mind.
3. Consolidation is not always the best option for you: Although most debtors become attracted to the pitch of lower monthly payments and revised interest rates, this is not the most suitable option for all kinds of debtors. If you’ve racked up a huge amount of debt and you’re not able to manage your multiple debt obligations, you can certainly take help of this option. But if you don’t have a financial plan in mind and you’re still practicing the bad financial habits, you shouldn’t take help of the debt consolidation option.
Therefore, when you’re a young adult and you’re down with credit card debt, you can get help of the debt consolidation options. Weigh the benefits and the cons of taking help of such services and make timely payments to avoid a bad hit on your credit score.
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