Consumer Credit Card Counseling

Consumer credit card counseling is available through debt management services when debt has spiraled beyond a cardholder's ability to repay. The easy-to-use consumer credit card has caused a nationwide indebtedness of over $360 billion dollars. "Be not thou one of them that strike hands, or of them that are sureties for debts" (Proverbs 22:26). Although people are called by God not to accept interest, this is just how creditors make their money. Because families use the consumer credit card like a mini-loan for bills that are difficult to pay, creditors make millions. Fortunately, counselors can help an adult resist the habit of paying tomorrow what should be paid today. Credit card counseling also exposes the dangers of high interest rates and reveals how debt ultimately becomes a greater burden than a convenience. This kind of counseling is especially important in a society that relies more and more on the convenience of being "cashless".

Most counselors will quickly counsel clients with some hard, fast rules about credit. Yes, they'll say, consumer credit cards give up-to-date financial statements, one convenient payment for many varied purchases, and a handy way to manage cash when traveling. However, for those seeking advice, odds are that they are in a black hole of debt. Some people may have believed advertising that there is an "acceptable" level of debt. For instance, in a recent study, college students carried an average consumer credit card balance of nearly $3000; two years previous the average was closer to $2000. Truthfully, by adding up the cost of an item, plus the interest on every single dollar, it may be that the actual expense of "buying now, paying later" is far more money than the shopper really wanted to pay. Most shoppers need to seriously rethink their spending habits.

Consumer credit card counseling will advise cardholders to do everything possible to pay off the balance monthly, at least to make more than minimum payments. At the very least, cardholders should pay the interest each month and stop charging the card until funds can be freed up to pay on the actual balance. Otherwise, the interest payment will accrue faster than the debt reduction. Credit cards with a high interest rate should be traded for those with low introductory rates as long as cardholders can pay off the loan during that time. Counselors may also recommend taking out a home-equity loan with a tax-deductible interest rate to break away from the repeating cycle. When seeking advice, be prepared for some significant changes. You won't be alone; numbers indicate that more than 3 million Americans contact financial counselors each year. Consumer credit card counseling demands more responsibility in spending, but the freedom of being debt-free is worth the hard work.

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