credit counseling

Credit Counseling in Arizona

August 26, 2014 by arizona

If you live in the state of Arizona then the chances are very good that you have a large amount of debt in your life. This is because Arizona is in the top ten list of places in the United States with the highest debt held among its residents. Not only do they have a higher rate of debt than many states, they are also more likely to have filed for bankruptcy and the amount of people that have defaulted on their students loans is also extremely higher than the average nationally. On top of all of this, research shows that if you live in Arizona then you probably spend more than the rest of the United States when it comes your health insurance costs. That means that is can be harder for you to pay debts off to begin with. With the deck already stacked against you, it might be time to look for credit counseling in Arizona to get yourself back on your feet.

What Is Credit Counseling In Arizona Helpful For?

Seeking out credit counseling in Arizona can help you figure out how to get all of your debts organized and taken care of. They are there to assist you with plan to manage your money, plan to pay off your debts and they have tons of other resources available at no charge to teach you the money skills that can keep you on the right track.

It is important that you not only find credit counseling in Arizona that you trust, but also that you give them all of your information. Now is not the time to be shy about where your money is going.

About Credit Counseling in Arizona

Because the majority of people live paycheck to paycheck, it makes it harder to keep up with your financial responsibilities if something unexpected comes up. Many times, this leads to more consumers relying on their credit cards and then getting to the point that they can only make their minimum payment every month.

If you decide that it is time to look for credit counseling in Arizona, you can find a company that can help you with education on how to put together a budget that you can stick to and even personalize a plan for you to pay your debts off. If it turns out that you need more assistance than just education, then they can also help you set up a management plan and consolidate your debts. This means that they can work with all of your creditors and not only will you be making one payment a month, but it may be lower.

The Effect on Your Score

It’s always important for you to know exactly what you are getting into when it comes to your financial situation. If you have started to look for assistance then you might wonder if credit counseling will have any effect on your credit score. While just undergoing a consultation or working out money management plans won’t have any effect, you should know that some options can make an impact on your number.

If you take part in a management plan or consolidation of your debts, it can lower your credit. This is because it can mean that as your accounts are paid they are closed down. In addition, if the credit counselors use nonpayment as a tactic for negotiation with your creditors, it can also lower your number. These might only have a short term effect and it might still be a necessary step for you to consider, so you will have to take some careful consideration to figure out how far in debt you are.

Make sure that you know exactly what will happen by speaking to the counselor and getting everything lined out before you start on any program. Even with their help, it’s still your credit that you are talking about and you are still the one responsible for any decisions that you make regarding its care.

How to Find Credit Counseling In Arizona

If you are considering the assistance of a credit counselor, then you might be wondering just how you can find a trustworthy company. There are numerous agencies set up to help get the assistance that you need without any further stress.

You can check the website of The Federal Trade Commission for a list of credit counseling in Arizona.
The Federal government and the Department of Justice also have sites set up with more information on these types of services offered in your area.
Try looking for information through The National Foundation For Credit Counseling. They are an agency that was set up to assist in the certification of counseling agencies.
Don’t forget to check with your state government. They are the ones that license agencies to work with consumers in Arizona, so they can tell you which ones are certified.

Why You Need A Debt Counselor

March 26, 2013 by arizona

Hiring a professional to help with debt relief is not always necessary. It really depends on how deep in debt you are and your personal capability to control yourself. After all, you got yourself in this debt situation. If it got to a point when it becomes a problem, you know that you have to change something about how you live your life and how you spend your income. Being in debt goes beyond the payments. That is only part of the problem. Your biggest concern should be to make sure that you identify what caused it so you are never placed in the same situation ever again.

This is probably the reason why some people want help when it comes to solving their debts. Hiring a professional that will advise you and provide you with the guidance needed to stick to your payment plans is one of the best ways to get out of debt. While it will not be easy, it will be a lot easier than dealing with everything on your own.

One of the professionals that you can hire is a debt counselor. Here are the benefits that you will get from these experts.

First of all, you will benefit from their knowledge and expertise. Since you got yourself in this financial crisis, you want to make sure that you get an outside opinion of how you should have been handling your finances. A debt counselor can provide you with this. They will help you analyze your income and expenses and find a way to satisfy your debt obligations despite your limited resources.

You will also benefit from the negotiation skills of debt counselors. To make sure that your money will fit all your credit obligations, you may have to request for lower monthly dues from your creditors. The counselor can help you with this. They will not be emotionally attached to the whole situation and they can talk to your creditor with more presence of mind and calmness. They will not be easily intimidated and besides, they may already have an existing work relationship with your creditors. The chances of them reaching an agreement will be faster and easier to achieve.

Another benefit to gain from the service of a debt counselor is that they will be able to screen all the intimidating and harassing calls that would have caused you a lot of stress. They will take over all communications on your behalf. That way, you will be left in peace to grow your debt payment fund. You can concentrate on building up your reserves so that you will never be placed in the same financial crisis again.

A lot of benefits can be enjoyed if you get a professional to help you out. But remember, they can only do so much. The lynchpin will be how you change your ways. You need to follow what the expert tells you to do. You have to start making the right choices as to where your money should go so that you do not waste it on unnecessary expenses.

Solving Credit Card Problems Through Debt Consolidation

March 7, 2013 by arizona

Solving Credit Card Problems Through Debt Consolidation

Credit cards debt can be very hard to get out of. The high interest rate and various fees makes your balance grow very fast. If you are not careful, you may end up with more debt than you can handle. As soon as you realize that your credit balance is getting out of hand, you need to act fast.

One of the most effective ways to get out of your credit card debt is through debt consolidation. Among the other choices, this is the program that will not have too much negative effect on your credit score. In the beginning, your score may dip lower but that will soon increase when you start paying off your debts based on the payment plan of the program.

The whole idea of debt consolidation is to combine your debts into one easy payment. So if you have more than one credit card debt and all or most of them are maxed out, then this is the right debt relief option for you. The consolidation of your credit accounts can be done in two ways.

The first is known as debt consolidation loans. This method begins with a loan application. The amount that you will loan should be big enough to cover the total amount of your credit card debts. Make sure that you check the interest rate of your new loan. It is ideal that it should be lower than your current APR. If it not then you may want to rethink your options. Once your loan is approved, you can pay off your credit card debts so they all return to zero balance. After that, you can concentrate on paying off the loan – which usually takes 5 years to complete. That depends on the details of the loan that you got. Most of the time, the monthly payments become lower because the combined debt amount is stretched over a longer payment period and the interest rate is also lower. At least, when you are shopping for a loan to apply for, this is what you should aim for.

The other option is debt management. This actually begins as credit or debt counseling. You get in touch with a third party company who will assign a credit counselor to you. This counselor will help analyze your finances to understand just how much you can afford to pay for your debts. It will be compared to the minimum payment requirement of your credit card debts. If your debt payment fund is not enough to cover the minimum, the counselor will put you in a debt management program that will allow them to negotiate with the creditor on your behalf. They will request for a longer payment term so that your current balance will be stretched over a longer period. That will result in lower monthly payments that your finances can afford. You will then follow a debt management plan or DMP that the counselor will monitor. You will send you payments to the credit counselor and he or she will be in charge of distributing payment to your various creditors.

Regardless of what you will choose between the two options, you will need a steady income to be able to support your payments. Remember that there will be no reduction on your credit balance. You should also make sure that you curb your credit card spending. Knowing how hard it is to get out of this debt, you need to make sure that you will avoid that pitfall in the future.