Reducing Debt

If you've made the decision to rid yourself of debt, it's time to take action. Some types of debt such as a home mortgage, may improve your credit rating over time, according to NFCC-approved Consumer Credit Counseling Services (CCCS) agencies like ours. But carrying high-interest loans and credit card debt could negatively impact your credit report. Here are five steps you can take today to focus on successful debt management:

• Create a budget. Focus on those credit card payments. Adjust expenses to pay whatever extra amount you can put toward the credit card balances. If you have trouble finding extra funds, consider consulting with a professional credit counselor at our Consumer Credit Counseling Services agency.
• Focus on one payoff. After a full examination of your overall financial situation, debt management experts will advise you regarding whether to pay off your higher interest loans first or focus on smaller balances. This recommendation is usually dependent upon the rates of interest and fees that are being applied to your accounts.
• Make extra payments. Pay more than the minimum required on monthly credit card payments. Once you have paid off a credit card, continue making the same payment amount toward another credit card, in addition to the required minimum monthly payment for that card.
• Ask for cuts. Call and ask your credit card companies for lower interest rates. They will consider your request, particularly if you know of lower offers elsewhere.
• Stay focused. Balance-free cards are tempting to use, as is the extra cash. But spending either will only put your debt management goal further away. Stay focused on being debt-free!

Our Consumer Credit Counseling Services agency specialists help consumers build individualized budgets that focus on managing debt. A counselor can analyze your finances and help create a personalized debt-management plan.

Take action today toward your personal debt management goals. These steps, and staying focused on your goals, will ensure that you have a debt-free future!