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Proper Debt Management To Avoid Credit Counseling



Proper Debt Management To Avoid Credit Counseling

Credit counseling is a place of last resort for consumers who have never
learned the basics of credit and debt management. Despite the fact that
we live in a world where credit has replaced currency or income as the
means to make purchases and even for the basics of life, very few people
understand the basic principles that underline our credit-based consumer
society. That’s why every year millions of Americans go bankrupt or are
forced to undergo credit counseling, debt reorganizing, or debt
consolidation just to stave off that black mark on their credit ratings.

Most of us end up with unmanageable debt or serious credit problems
through a series of bad decisions, bad luck, and poor knowledge of how
the system works. We are often lured into the credit and debt trap very
young through advertising, peer pressure, and the desire to be popular.
What teenage girl can do without the latest tank top or shoes? What
self-respecting teenage boy can be without the current pants or running
shoes? What student can afford to be without food and accommodation as
they go through college? We start young without any knowledge and the
only experience that we pick up, as we get older is that we can get more
credit when our current supply runs out. Without the necessary knowledge
to begin with it’s a wonder that any of us can survive early adulthood
without credit counseling.

What we need from the very beginning is a course on credit in high
school, a refresher in college, and a supplemental course in debt
management every time we get another credit card or increase our credit
card limits. If not, then it’s no wonder that if our knowledge doesn’t
increase then our credit problems will. As we end up telling our credit
counseling service years down the road, “ I didn’t realize how deep I was
getting in.” Once we realize that it is too late. The basics of credit
and debt management are not rocket science material. They are very
simple. Only borrow what you can afford to repay in a reasonable period
of time. If your income decreases then you must spend less and not
borrow more. Pay back what you borrow at the agreed upon times and in
the agreed upon amounts. Never borrow to buy anything you can consume;
you should be able to afford it now or you should not buy it. Finally,
never use one credit card to make a payment on another credit card. If
you follow these few basic steps then you should not only be able to
avoid credit counseling through proper debt management, you will have a
happier and less stressful life.

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