We are already over a month into 2020! How time flies! This is a great time to take a minute to look back at the past month and see if you are headed in the right direction with debt management as well as other financial goals. Are your efforts to consolidate debt in 2020 on track? We can help you with an overall understanding of this concept to help you stay debt-free to craft the New You in this New Year!
How to Consolidate Debt in 2020 and Stay Debt-Free
Credit card debt management is a constant struggle. Finding the right strategy to fit your profile is harder than you think with numerous services and companies offering varied solutions. It creates more confusion than clarity. This is where ACCC can come to help you understand what debt management option is right for you. Among the many solutions, you may want to consolidate debts in 2020 and stay debt-free. So, how does debt consolidation work?
Debt consolidation is essentially taking out one large loan in order to repay your other debts. This loan usually has a more attractive interest rate than your existing debts and allows you to have only one outstanding loan rather than many.
How does Debt Consolidation & Improving Financial Growth Connect?
Your attempts to consolidate debt and financial growth often go hand in hand. Improving financial growth can work hand in hand in times of financial despair. However, it is crucial that you choose the right organization for the job.
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling agency that works to help individuals and families find a personalized path out of debt. Based on your 2020 financial goals, you will be presented with a list of options on how to consolidate debt.
Consolidating Debt & Credit – Is There a Link?
If you are looking at consolidation loans as the option to pay off your consumer debt, where you stand with your credit is a crucial determinant of success. People who want to consolidate debt with bad credit may find their options limited. If your credit score is low to poor, rates on debt consolidation loans may be as high as 30%. Therefore, debt consolidation with bad credit may not be the most effective choice for paying off debt and staying out of debt for good.
Use a Debt Management Program to Consolidate Debt
How you choose to consolidate debt is a choice. With the goal to build a new you in the new year, in 2020 you should always make smart decisions. Therefore, choosing a debt management program to consolidate debt is a favorable choice for your overall financial management routine.
These programs are typically offered by a credit counseling agency to clients who qualify. In this plan, the agency will secure lower minimum monthly payments or lower interest rates from your creditors, making repayment more feasible and affordable for you. Unlike consolidating loans, with this method the agency receives your payment and disburses it to each of the accounts. With a debt management program from ACCC, you’ll gain the financial discipline and receive the support you need to pay off your debt quickly – usually in 60 months or less.
What Happens When You Consolidate Debt with ACCC Debt Management Program?
The ACCC debt management program provides a unique way of eliminating credit card debt. It is and is individually designed to meet your specific financial situation. If you are looking to consolidate your debts, you may find relief through ACCC’s debt management program. The professionally trained and independently certified counselors will:
Evaluate your financial situation:
This is where you will work together with the certified counselors to identify any and all spend categories. This step is the first eye-opener in terms of building your finances in 2020! Sometimes it may seem as if you are aware of how much money you spend on a daily basis. However, once you put down everything, you are able to identify where you can make adjustments to facilitate your debt recovery process.
Assist you in creating a budget to focus your finances and help with a debt management plan:
Secondly, if you already do not have a budget in place our counselors are here to help you set that up. They will give you information on average spending in each category and work with you to set up a budget that works for you. In reaching your financial goals in 2020, this is the most basic but also the most important financial guideline.
Work with creditors for a possible reduction in finance charges, late fees and/or over-limit charges, monthly payments and time to pay off debt:
This is where the ACCC expertise comes to help you most. Once we have all your debt collated, we will reach out to the creditors to work with them to make your debt more feasible for you to pay off. The contractual agreements help the reduction in finance charges, monthly payments, and interest rates. Once you have your debt management program established with ACCC, we will take over the responsibility to pay your different creditors and you are only responsible for making one payment to ACCC to cover the cost of your adjusted debt.
Benefits of Using ACCC Debt Management Plan to Consolidate Debt:
- You’ll save money. ACCC is a non-profit organization. Therefore, the service fees for a debt management plan are among the lowest in the industry. In addition, you save money by reducing interest rates and fees on your debt.
- You’ll enjoy the convenience. When you enroll in a debt management plan with ACCC, our counselors will handle most of the details for you.
- You’ll take on no new debt. Unlike debt consolidation programs that require you to take out a new loan to pay off what you owe, our debt management plan does not involve taking on any new debt.
- You’ll learn a lot about managing money. With our free educational resources and calculators, you can learn a great deal about paying off debt, rebuilding credit, dealing with a secured vs unsecured loan, and much more.
American Consumer Credit Counseling’s certified counselors are a great resource for you to get all the information you need in this regard. Sign up for a free credit counseling session with us today!