New year. New goals. New budget.
We are at 18 days and counting until Christmas, and 25 days and counting until the New Year. Do you have plans for debt consolidation? Do you have plans to eliminate your high interest credit card debt and begin working your way out of a life style of living paycheck to paycheck?
The next 20 to 30 days serve as a major challenge to many American consumers. While many consumers may be looking toward making more financially sound decisions in the year 2017, it is difficult to avoid the temptation to overspend on presents and gifts as the Christmas season approaches. Making the decision to look for options for debt consolidation can be tempting, but many financially stretched consumers fear that they will get themselves in even more financial trouble if they start the debt management consolidation process.
A debt management firm, for instance, may appear to offer the best options for consolidating and eliminating debt, but many consumers fear that they will consolidate the debt they have and then go back to their bad habits or racking up charges on new credit cards. For individuals who find themselves in a financial Catch 22, the decision to take charge of your debt can be frightening.
Could Credit Counseling Help You See Your Way Out of the Financial Hole That You Are In?
Many Americans are in need of information about debt consolidation options. In fact, nearly 20% of Americans between the ages of 18 and 24 consider themselves as being in ?debt hardship.? When one in five Americans finds themselves living paycheck to paycheck this debt can create not only financial stress, but physical and mental stress as well.
If you are looking at options for debt consolidation, you have several options.
The first part of every debt consolidation and elimination process, however, is learning to rein in your current spending. Not in 18 days when the holiday season is over. Not the first of the year when the calendar turns to year 2017. Now. Immediately. You have to make the decision right now to understand what is necessary and what is a luxury. Making a firm commitment to reining in your spending is the first step to financial freedom. It does not mean that you will never be able to splurge again, but it does mean that you need to slam on the brakes now!
Once you have committed to this change in habit, it is then time to look at the various debt management strategies. For some families this means seriously attacking the current debt that you have. And while house loans with very low or reasonable interest rates can be considered good debt by many, everyone agrees that high interest credit card debt is dangerous. Using one of two approaches, however, you can begin to see progress in eliminating these heavy weights. For some families, the first step is to start completely paying down the card with the lowest balance. For other families, the answer is in paying off the card with the highest interest rate. Month by month and payment by payment you should see the beginning of progress. In some cases, some individual creditors are able to negotiate lower interest rates on an account that is in good standing.
Individual Debt Elimination Can be a Slow, Painful, and Never Ending Process
When you realize that the The average U.S. household with debt carries $15,355 in credit card bills and $129,579 in total debt you begin to realize the significant size of the problem that many people are looking at. A month by month approach, in fact, can seem nearly futile. For this reason, many consumers make the decision to work with a debt consolidation company. These companies, because they are negotiating for hundreds or thousands of consumers can often negotiate more favorable pay off parameters, and as a result can enable you to make faster progress. Typically, they lump the majority of your debt together and negotiate a moderate interest rate. Making one payment, with a lower overall interest can, in fact, help you make faster progress on your ultimate goal. Make this day the last time you are one of the 26% of Americans who do not pay their bills on time.