Credit counseling is a service offered to consumers who are in debt to credit card companies. Credit card balances can add up quickly if you spend more than you can afford and it can be difficult to get out of debt. These are the signs you need to seek help and meet with a credit counselor as soon as possible.
You have multiple maxed out credit cards. There are several advantages to using a credit card, including making easy payments and building your credit score. However, shopping with a credit card can make you feel like you can afford more stuff. If you have been shopping with multiple credit cards until all your accounts are maxed out, you need to meet with a credit counselor and figure out a better way to manage your spending.
You open new credit lines to pay the old ones. Opening a credit line to pay off another account is easy thanks to the balance transfer option offered by most credit card companies. This can actually be a good way to manage your debt if the new credit lines comes with lower interests and fees. However, if you find that you are constantly opening new credit lines to stay ahead of your creditors, you need help from a counselor.
You do not have a monthly budget and don’t really have an idea of how much money you need to take care of your monthly expenses. Basic budgeting and money management skills are not taught in school. This is why a lot of households do not live on a budget. The first step towards getting out of debt is figuring out your monthly expenses, reducing some of these expenses and learning to live on a budget. A credit counselor can teach you these essential skills.
You are not sure how much you owe to your creditors. If you do not have an idea of how much money you owe, you definitely need to sit down and go over your finances. You will not be able to get out of debt until you confront the issue head on and figure out how much you owe. A credit counselor can go over your financial situation with you and help you figure out how much you have to pay back and how much your monthly payments should be.
You feel overwhelmed and don’t know what to do. This is a normal reaction to finding yourself deeply in debt. You might feel depresses, stressed out and don’t know where to start. This is where sitting down with a credit counselor will really make a difference. The counselor you work with will go over your finances with you and help you put together a plan to get out of debt. You will feel a lot better once you know where you are going!
If any of these issues sound familiar, you should definitely consider meeting with a credit counselor. This is the first step towards taking control of your finances and getting out of debt.