Debt can be overwhelming and prevent you from living the life you want to lead. When debt begins to accumulate, especially from multiple sources, it can be difficult to get a hold on it and manage your debt in addition to current expenses. Credit counseling is a great solution for those struggling with debt. Credit counseling cannot only create effective repayment plans for debt, but can also reduce the overall amount of money that you have to pay back. There are a number of ways that credit counseling can positively affect your life, including help with the following:
- Consolidation of loans: When you have multiple loans, such as federal loans for education, you can consolidate these loans into one monthly payment to reduce the complexity of your debt and repay it more readily. This approach can minimize the stress of having to keep track of multiple loans and their repayment schedule, which makes the debt more manageable as a whole.
- Lowering interest rates: Credit counseling can reduce your interest rates on certain debts, credit card debts especially, which can make repayment easier and reduce your total debt over time. Many credit cards have extremely high interest rates, and this reduction can make all the difference in effectively paying back debt faster.
- Making repayment plans: Credit counselors can negotiate repayment plans with creditors and can even reduce your debt and interest rates, which sets out an express plan to repay your debt. These plans make debt manageable instead of overwhelming and organize your debt in a way that can reasonably be paid back over a specific period.
- Allowing you to take back control of your finances: Often, in situations with considerable and complicated debt, individual’s overall finances feel overwhelming and out of their control. Because debt can feel so overwhelming, many people do not actively deal with it, which can worsen your debt and credit score and make you the target of debt collectors. Credit counseling allows you to take back control of your finances, organize your debt as well as your income, and set up an active plan that will reduce your debt over time and get your finances back on track.
If you are currently struggling with your credit score or debt, credit counseling can make all the difference in allowing you to get your finances and your life back on track. Erin B. Shank, P.C. has years of experience helping our clients regain control of their finances and reduce their overall debt. If you have any questions or want to speak to a qualified Waco or Killeen bankruptcy attorney, please contact us at (254) 296-1161 today.