10 Reasons Why You Should Get Your Finances Under Control
In today’s world, bills seem to overrun us at every turn. We often find that we get into a situation where we can no longer control our debt and have to find a way to finally get our finances under control. If this sounds like you, it may be wise to use a consolidation service to consolidate bills and get a better handle on your financial life.
When you consolidate bills, you will be able to breath easier. You see, creating the debt this is the fun part. However, once the debt becomes unmanageable, it is no longer fun and it is time to take steps.
Why should consolidate bills? Well, there are many different reasons, but in this article, there are five excellent reasons you might want to consider bill consolidation. So, without further ado, here is our advice on the five reasons you should consolidate bills.
Consolidate Bills and Get One Payment Monthly
That’s right, when you consolidate, you are turning all your debt into one payment on a monthly basis. Before debt consolidation, you had to worry about making sure each creditor was paid on time and it could become a hassle trying to keep up with it all, eventually forgetting to pay one at all, which could be hazardous to your financial life.
Consolidate Bills – The Payment is Lower
In most cases, your one monthly payment you make each month, will likely be considerably lower than what you were originally paying.
Why? Simply because most of the time, with consolidation, you are going to receive a much lower rate of interest than you had with the original creditors and delinquent accounts.
Consolidate Bills and Credit Scores
When you pay your bills, your credit report reflects this. Even if it is late to begin with, once you start making regular payments on time, which is so much easier thanks to the one monthly payment, your credit score will begin to improve because you are now taking the steps necessary for that improvement.
Consolidate Bills and End The Phone Calls
Once you begin the consolidation process and begin making your payments on time each month, your creditors will stop calling you on a daily basis. This alone will make life a whole lot easier, you will never have to be worried when answering your phone again.
Consolidate Bills to Eliminate Debt Faster
You see, once you begin the debt consolidation process, you will find that your debt will be eliminated and paid off in as little as one year and up to three years time. What does this mean? It means that within three short years, you could be living a debt free life once and for all.
How to Eliminate Credit Card Debt
Credit card companies can change almost all of the terms of the credit card by giving just 15 days notice.
We get used to credit card companies adjusting their lending rate by 1/4% as interest rates fluctuate but did you know they can alter any of the terms for any reason. For example they can increase the late payment fee and they can increase the interest rate without the need to justify it. If you are late or miss just one payment the low rate you are currently being charged can double or even treble almost overnight.
Credit card companies can increase the cost of a purchase months after you bought it.
If you purchased a widescreen plasma TV 3 months ago, using a card which at the time was costing 9.9% apr, and you are late with just one payment, the credit card company can charge you a late payment fee, say $40, and increase the interest rate to 29.9% apr, or even more, and there is nothing you can do about it.
They can, in effect, increase the cost of your TV months, or possibly even years after you purchased it. The TV retailer wouldn’t be allowed to do this but your credit card company can.
Discount offers are only good if you keep up all your payments.
Interest free balance transfers and initial periods can dissapear for any minor omission. Failure to keep to all the terms of a card will result in special terms being withdrawn and possible penalty interest being applied. If you have interest free purchases and balance transfers make sure you keep up the payments.
It’s not just your card payments you have to keep up.
If you miss a payment on your mortgage, or your car or any other financial payment, your credit card companies can re-assess your credit score and increase your interest rate accordingly.
If you therefore miss a loan payment on your boat or car, but still pay the payments due on your cards, you can find that your credit card interest charges jump to 2 or 3 times the original rate.
Credit card companies are today making record profits from you.
If you don’t pay your cards in full each month credit card companies make the majority of their profits from you and a substantial portion of that is in the additional charges they levy.
It makes little or no sense to keep money in the bank earning 5% maximum and pay 29.9% or 19.9% or even 9.9% on your cards. Pay off the card and use the card for emergencies rather than the savings. Without the card payments you will be able to rapidly replace the savings.
Without your knowing credit card companies can hold you hostage at the very time you may really need financial assistance. Don’t allow credit card companies the continuing opportunity to make record profits at your expense, and at the same time the opportunity to benefit from any misfortune.
Professional Credit Counseling Service
Having a credit card seems like a necessity in today’s soceity. With a credit card, we can buy things even though we do not immediately have the funds to pay for them, with the idea that we will have the money at a future date. Unfortunately, many of us are not careful enough when it comes to using that credit card, and when the bill comes in are shocked to realize how much is owed. Some of us simply cannot seem to get a handle on our credit spending and need some help in order to get that spending under control.
If you are experiencing trouble in controlling your spending and the overuse of your credit card, there are services that offer help. In order to reduce your payments and your interest rates, many credit cards provide customer service lines that you may call. Operators on these lines can be asked if you can apply for a lower interest rates. Often, your query will be anwered within minutes, informing you of whether or not you qualify for the lower rates. In this way, you need only use your phone line in order to control your rates.
There are also hundreds of websites that offer helpful tips on controlling your spending and getting your credit back in line. Through these sites, you can find the most succesful route of credit consolidation by pinpointing lower interest rates either on other credit cards or through financial institutions. Some websites will also offer access to people whose job it is to assist others in getting their credit ratings back on track. Many sites will allow users to purchase products such as books or tapes that offer ways to manage your finances.
Another way to get your spending habits back on track is to use a credit counseling service. Credit counselors are professionally trained people who can help you to control your spending and reduce your debt through careful management and action plans. Counselors work with your creditors in order to lower pyaments and interest and help you get your credit score back up. Many credit counseling services are free to the public as non-profit organizations, operating through the support of credit extending companies. If you choose to use such a service, be aware that you will need to disclose your financial informaiton to them in an organized and honest manner.