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Education is the Foundation of Keeping Out of Debt
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Posted On :
Sep-14-2012
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Article Word Count :
536
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The basic idea of staying out of debt seems simple: don't spend more money than you make. Unfortunately, for millions of Americans it’s an idea that is much easier said than done.
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The basic idea of staying out of debt seems simple: don't spend more money than you make. Unfortunately, for millions of Americans it’s an idea that is much easier said than done. The lure of credit cards and "buy now, pay later" is often all too tempting. Using credit, people can purchase items and luxuries they may not otherwise be able to afford. But the excessive use of credit can spin out of control quickly, leaving people trapped in a seemingly endless spiral of paying hundreds of dollars in minimum payments each month, thousands of dollars in interest and never making a dent in their principle.
So while the idea of staying out of debt seems simple, credit and financial education is the key.
Where Can You Start to Learn About Debt Management?
Non-profit credit counseling agencies provide financial education to consumers who are struggling with credit card debt or for individuals and families who are looking for ways to balance their budget to help secure their financial futures. The consumer debt education provided by a reputable non-profit agency goes far beyond giving individuals information on how credit and credit agencies work. Highly trained professional credit counselors help clients assess their current financial situations to come up with a personalized plan to tackle debt and regain control of their finances.
The consumer debt education process begins with credit counseling that can be completed in person, over the phone, or even online. Clients are asked to provide basic financial information including all sources of monthly income as well as all monthly expenses. With this information, credit counselors are able to see the big picture of where their clients stand financially. Using this fiscal snapshot, counselors are able to tailor the education and advice they provide to their clients. Credit counselors can provide valuable assistance in setting up a monthly budget plan to help their clients cut unnecessary spending in order to allocate more funds each month toward paying down their debt and staying out of debt in the future.
Apply Your Learning with a Debt Management Plan
Depending on the circumstances, credit counselors may also suggest setting up a debt management plan. Through debt management, credit counselors help their clients consolidate their debts into one manageable monthly payment. Credit counselors work with credit card agencies and advocate on their clients’ behalves and are often able to waive late fees and negotiate lower interest rates and lower payments. Each month, one check is written to the credit counseling agency rather than to each individual creditor. Credit counselors then disperse appropriate payments to each creditor, ensuring that payments are on time to help bring down debt and improve their clients’ credit scores over time.
In more extreme cases, credit counseling agencies may also provide pre-bankruptcy counseling and education as well. It is important to note that credit counselors who provide consumer debt education always work with their clients to explore all possible avenues prior to filing for bankruptcy.
When choosing an agency that provides consumer debt education, always look for a non-profit credit counseling organization that is approved by the Better Business Bureau and the National Foundation for Credit Counseling.
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Article Source :
http://www.articleseen.com/Article_Education is the Foundation of Keeping Out of Debt_228658.aspx
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Author Resource :
The author has an immense knowledge on consumer debt education. Know more about credit counseling agencies related info in his website.
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Keywords :
consumer debt education, credit counseling agencies,
Category :
Recreation and Sports
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Recreation and Sports
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