Research a debt consolidation company with these tips.

Choosing the Right Debt Consolidation Company

Choosing the right debt consolidation company requires homework. Before you decide, you should contact several agencies and interview them. After all, you’re hiring the agency to help you. So you need to know whether they’re committed to doing a great job for you.

Remember to check with your friends or relatives for recommendations. Maybe they have worked with debt management companies and found some they liked. Gather as many referrals as possible, and add these to your list. Also, interview each referral.

Additional Tips for Choosing the Right Debt Consolidation Company

• A legitimate debt relief agency is open and honest. It should be willing to provide you a clear, detailed description of its product and services. If the agency does not answer your questions or its answers are not satisfactory, go elsewhere.
• A reputable consolidated credit counseling agency will give you truthful, useful advice on how to manage your money and use credit wisely. The agency will also help you establish a written budget and offer educational materials and financial workshops.
• The fees charged by a debt consolidation company should be reasonable, meaning a maximum of $70/month for a debt management program. (Fees vary by state.) Free ongoing education on how to manage your finances should be available and accessible – even if you decide against entering a debt management program.
• The agency should have been in business for at least seven years and be non-profit. The advantage of non-profit debt consolidation companies is that they can offer their services for free or low-cost since they are funded in part by contributions from creditors.

Steps in Choosing a Debt Consolidation Company

The last, but most important steps, in selecting a reputable debt consolidation company are reviewing your interview notes and narrowing down the list.

• First, gauge your reactions to the information each company provided.
• How did you feel during your conversations with them?
• Were you comfortable? Were you unsure? If you were uncomfortable, cross off those agencies from your list.

By now, you should have a few final candidates. So, what is your next step? Now you can narrow down the list even further. In order to do this, contact the Better Business Bureau or your state’s Attorney General’s office to check on whether any complaints have been filed against each debt consolidation company. If there were complaints, find out how quickly the company responded. Also, find out whether the complaints were resolved appropriately. Armed with this information, you can now select the best debt management solutions provider.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Budgeting is a great start for paying off debt.

How Does Budgeting Improve Your Life?

Here are some points that outline how budgeting can improve your life.

A budget is a guide. It tells you whether you’re going in the direction you intend to, financially. You may have goals and dreams. However, it is important to set up guidelines for reaching them and you measure the progress. Failing to do so will send you in the wrong direction. Can you imagine the government or a major corporation operating without a budget? No, and neither should you.

A good plan lets you control your money instead of your money controlling you. It will tell you if you’re living within your means. Before the widespread use of credit cards, you could tell if you were living within your means because you had money left over after paying all your bills. The use of credit cards has made this much less obvious. The accumulation of too much credit card debt can hinder the budgeting process.

How Else Can a It Help You?

• A budget can help you meet your savings goals. It includes a mechanism for setting aside money for savings and investments.
• Following a realistic budget frees up spare cash so you can use your money on the things that really matter to you instead of frittering it away on things you don’t even remember buying.
• A budget helps your entire family focus on common goals. It helps you prepare for emergencies or large or unanticipated expenses that might otherwise knock you for a loop financially.   A good plan is not just a spending plan; it’s a communication tool. Done right, a budget can bring the two of you closer together as you identify and work towards common goals. It can also be a tool to reduce arguments about money.
• A budget reveals areas where you’re spending too much money so you can refocus on your most important goals and it can keep you out of debt or help you get out of debt.
• A budget actually creates extra money for you to use on things that matter to you and essentially helps you sleep better at night because you don’t lie awake worrying about how you’re going to make ends meet.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Managing your checking account prevents banking mishaps.

Tips For Managing Your Checking Account

Here are six tips for managing your checking account.

1. Know the balance – Be sure to use the bank’s phone app, online banking login, or take a trip to the ATM weekly to ensure you are always aware of the balance in your checking account.
2. Direct deposit – Utilize automation and set up direct deposit so your paycheck is immediately accessible in your account. Explore automatic bill pay through your checking account as well to ensure there are no missed payments.
3. Overdraft protection – It is usually best to opt out of overdraft protection. With overdraft protection, banks will cover the charge, usually up to a certain amount, so the transaction is not declined. This type of protection comes with a hefty fee (which can make it harder to pay off debt). If a person with overdraft protection has $3 in their checking account and writes a check for $6, the bank will cover the $3 difference but charge an overdraft fee that could be as high as $25 or more.
4. Online alerts – Set up online alerts for when your account reaches a certain amount. These alerts will help you avoid over drafting.
5. Balance checkbook – Balancing your checkbook helps ensure your checking account balance matches your records. Be sure to record all dates and the amount that was deposited or withdrawn.
6. Bank ATMs – Avoid using out of network ATMs, so you don’t get stuck paying withdrawal fees.

Bottom Line…

Keep in mind, checking accounts are not the only type of bank account you should have. Savings accounts are important too! There are several different types of bank accounts that you may want to open as you grow your wealth and become more mature financially.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Our credit counselors are here to help you with debt management.

How ACCC’s Personal Debt Consolidation Program Work

How does debt consolidation work with ACCC? First, a certified counselor from ACCC will assess your current debts and bills. This helps create a manageable budget for you. Once you establish a budget, and if you are a viable candidate, your counselor will provide you with debt consolidation information. If you do go ahead with the personal debt consolidation program, also known as a debt management program, ACCC will work out a plan with your creditors. In the program, you will make one monthly payment to ACCC and we pay each of your creditors on your behalf.

Benefits of a Personal Debt Consolidation Program

• Under the personal debt consolidation plan, your monthly financial obligations will be greatly simplified. This will make it easier for you to budget and stay on top of your payments.
• In many cases, creditors participating in the ACCC debt consolidation program will agree to lower interest rates and to waive existing late fees and over-limit fees. This can have the effect of lowering your monthly payments and reducing the time it takes you to become debt-free.
• In combination with the debt consolidation program, we offer expert debt advice and educational resources.  This will help you stay on the path to a debt-free future.
• Compared to most debt relief companies, ACCC has very low fees.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.

Our debt counselors know that managing your finances is not straightforward. It has its unique set of challenges and sensitivities that you must carefully deal with at all times. Credit is a big part of the construct of your overall finances. Your financial acceptance as a responsible person depends largely on how you maneuver your credit journey. How you manage your consumer credit says a lot about your financial responsibility and credibility. Therefore, understanding the basics of credit is crucial for your overall financial management journey. This post is dedicated to the concept of secured and unsecured credit cards.

Unsecured cards have no collateral, while secured cards have collateral backing it.

What is Credit

Credit is the ability to buy something now but pay for it later. Using credit can be incredibly convenient. However, it can also be the source of financial troubles for people who have difficulty controlling their spending. The general term credit in a financial management perspective can also refer to your credit score. This is a number from 300-850 that tells lenders how creditworthy you are. The higher your score, the more attractive you are to lenders and creditors. Your credit score is based on your use of credit in the past and how likely you are to repay loans in a timely way. Knowing how to manage credit and how to improve your credit score are essential skills for managing money and reaching your financial goals. So how exactly do you establish credit? Where do you begin?

Secured and Unsecured Credit Explained

Secured Credit Cards

No one starts off with a credit history. If you are starting your independent financial journey, the best place to start might be a secured credit card. This is a method used by lenders to establish your creditworthiness. These types of credit cards are identical to the unsecured ones. The only difference is that you have to make a minimum deposit also known as a security deposit to receive a credit limit.

These types of cards are usually targeted to consumers who are trying to build their credit from scratch or people trying to rebuild their credit. The security deposit typically acts as collateral if a default may occur. This deposit is fully refundable as and when you upgrade to an unsecured card or payoff the balances in full and close your account.

Your credit limit is often the amount you put down as a security deposit when it comes to this type of credit card. For example, if your security deposit was $200, your credit limit will also be $200. If you need a larger credit limit on your card, you will simply need to put down a larger security deposit. These deposit amounts typically range from $200 to $2500.

More on Secured Credit:

Some lenders do offer the flexibility of increasing your credit limit on your secured card without an additional deposit under certain conditions. For instance, you must make the first five payments on time in order for you to be eligible for an increase in credit limit. This can also act as an incentive to practice responsible credit behavior.

Like any other form of credit, you will pay interest and fees if you carry a balance month to month. Therefore, paying your secured credit card dues on time and in full is the only expectation you must fulfill. This is essentially a way to establish your credit. Your responsible payment history is a good reflection on your credit report and a solid foundation to building a good credit score. Maxing out on your secured credit cards or missing payments can reflect negatively on your credit report. Like any other form of credit, your secured credit lines are also the three main credit bureaus.

Secured and Unsecured Credit Cards

Whilst a secured credit card is a good stepping stone into building your credit an unsecured credit card is a better choice in the long run. If you compare secured and unsecured credit cards the latter offers more perks, rewards, flexibility, and room to grow in your credit journey. Generally speaking, unsecured credit cards are a better deal for consumers. When a card is unsecured, this means you don’t have to put down a deposit as collateral. Unsecured credit cards also tend to come with better perks and rewards, lower fees and lower interest rates. Bankrate gives a great comparison between secured and unsecured credit cards against some key variables.

Source: Bankrate

In Conclusion:

ACCC can get you the credit counseling and debt management help you need to get out of credit card debt.

Drowning in Credit Card Debt? Consider Credit Counseling!

The important thing is to have a plan for paying off that debt! When you feel like you have more credit debt than you can handle, American Consumer Credit Counseling (ACCC) can help. We’re a non-profit organization that provides debt relief services for people who need help getting out of debt. ACCC’s credit counseling and debt management programs, have helped many to pay off credit card debt.

You can always consider paying off credit cards through a debt management program such as the one offered at ACCC.

Here’s How ACCC Can Help You Get Out of Debt!

• Evaluating your financial picture. An ACCC certified credit counselor will review with you all of your outstanding credit card statements, monthly bills, and other debts as well as your income. They will make a plan for how to eliminate debt – usually within five years.
• Making a plan for the future. The counselor will also help you create a workable budget that you can live with and a plan for staying debt-free in the future.
• Consolidating your debts. You can simplify your finances and reduce the stress of credit card debt through debt consolidation. This allows you to make one payment each month instead of many payments to a variety of creditors.
• Working with creditors. We’ll work with your creditors to lower your  debt by securing lower interest rates, lowering monthly payments or eliminating late fees. This will save you money and help you pay off your debt faster.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

If you’re trying to pay off debt, look for these qualities in a credit counseling agency.

What is Credit Counseling and How Does it Work?

When you contact an agency such as American Consumer Credit Counseling, a professionally trained and certified counselor will help you evaluate:

• Your current financial situation.
• Provide you with a detailed review of your income, assets, and expenses.
• Provide personalized options based on your goals, which may include social service referrals, educational materials & resources, and a Debt Management Program.

What to Look for in a Consumer Credit Counseling Agency

Choosing an agency is a large portion of the debt relief process. The following video explains what you need to keep an eye out for in an agency.

Does Consumer Credit Counseling Hurt Your Credit Score?

Simply speaking with a counselor for a consultation has no affect on your score. As a result of your counseling session, a debt management plan might be the best choice to get out of debt. However, certain steps within a plan could have an impact on your credit score in the short run. These steps might involve closing your credit accounts that in turn can hurt your score. Keep in mind that your score will come back up over time with positive credit behaviors.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Stay on track with your debt payments with these budget-friendly ideas.

Celebrating Valentine’s Day On A Budget

There are plenty of things to do on Valentine’s Day without breaking your bank. Let’s break it down now, shall we? 

Movie Night In

With the popcorn, soda, movie tickets and the chocolates, your movie night can get quite an expensive affair. Therefore why not turn your own home into a cozy movie night experience as you go about celebrating Valentine’s Day on a budget? You are already paying for your streaming services. So pick your favorite classic on Netflix this Valentine’s Day!

Put on those skates under a starry night’s sky

Pack up some sandwiches, a thermos full of hot chocolate and head over to the skating rink! You are guaranteed to spend some quality time with your loved one on a budget.

Game night is a fun way to celebrate Valentine’s Day

A game of Scrabble or cards? It’s a fun way to spend your Valentine’s Day! Add some homemade nibbles into the mix and a glass of wine, you are all set to celebrating Valentine’s Day on a budget yet in style.

Homemade Spa! Sounds Good to Me

Shop around for some bath salts, scented candles, and a bubble bath. You can create your own spa in the comfort of your own home. If you are living a busy life and are in need of a perfect way to relaxation, this is it! Throw in a pitcher with ice water, cucumber slices, mint leaves, and a squeeze of lime to cap off the ultimate spa experience.

Celebrating with DIY Valentine’s activities does not imply you are cheap, just that you are financially savvy! You do not have to miss out on the experience or end up with consumer debt! In my opinion, it’s a win-win.

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today. 

Online sales during the crucial U.S. holiday season are expected to rise 4.8% from a year earlier as retailers go all out to woo inflation-hit consumers with even bigger discounts and promotions according to a report from Adobe Analytics.  

Therefore, having some tricks up your sleeve on shopping smart online during holidays like Halloween is worthwhile. This can also help you not to accumulate too much consumer debt. 

Avoid debt by shopping smart online.

Shopping Smart Online During Holiday Season

More and more consumers are turning to the Internet to do their holiday shopping. It saves a lot of time and allows you to shop on your own schedule. Wherever you shop, our credit counseling advice is to a holiday budget. It’s also important to take advantage of saving opportunities. So, what else can we do to make shopping smart online a more natural thing? Let’s break it down!

Timing is Everything!

During the season, retailers and consumers capitalize upon certain days that are prime for purchasing holiday gifts. The weeks following Halloween retailers start their promotions and typically it is called early Black Friday. Then comes the biggest deals of the season along with Black Friday as well as Cyber Monday. Also, since recent years, retailers have started taking markdowns on products mid-year, too. I recently came across July Black Friday! So, it is worth keeping an eye out for great deals throughout the year! You can also take advantage of Prime Day on Amazon for more tech like gadgets you plan on gifting!

Watch that Shipping Costs

Shop smart and ship smart! This should be your shopping motto! If you know you have a few big purchases to buy, wait to buy them all together. This way you can save on shipping costs. Some places tend to waive shipping fees if an order is over a certain price.

Look for Deals Deals and Even Bigger Deals!

Dig the internet sandbox for promotion codes and coupons! Sometimes you wouldn’t imagine you could have that many discounts! All it takes is a simple search on your search engine! Places such as RetailMeNot are a good example! If you carry store credit cards or sometimes even sign up for one, you can receive considerable discounts. However, keep in mind that these credit cards can add up too much debt to your financial portfolio and throw your finances off. Another place to look is your cash back deals from your bank cards. You more rack up some good bargains there too!

Above all, Shop Cautiously!

When shopping through numerous deals, be careful not to make any unnecessary spontaneous purchases. It is easy to get sucked into the deals that websites are promoting. Go into your shopping knowing exactly what you are looking for, and buy only that. Beware of all the recommendations that appear when you are shopping online. That is a smart retail strategy to get you to buy more! Shopping smart online is only possible with discipline! So, this holiday season make sure you plan, budget and discipline yourself!

If you’re struggling to pay off debt, schedule a free credit counseling session with us today.

ACCC shares the difference between owning vs leasing a car.

Owning vs Leasing a Car

Owning a Car:

When you buy a car instead of leasing you are the owner of the car. Since it is an asset that belongs to you, you can keep it as long as you want. When you buy a car your upfront costs include your down payment, taxes, registration and other fees. The biggest downside to owning a car is that your monthly payment is higher as you are paying the entire price of your car. With the ownership, you can trade your car at any time and use that money towards a new car at your will. Also, at the end of the loan term, you have equity to help pay for your next car.

Leasing a Car:

With a lease, ownership of the car is not yours. Therefore, at the end of the lease term, you must return the vehicle. When leasing a car the upfront costs include first month’s payment, a security deposit, an acquisition fee, a down payment and other fees. The advantage of leasing a car is lesser monthly payments. This is because you are only paying for the vehicle’s depreciation during the lease term. One of the biggest downsides is the limitation on miles. You will have to pay charges if you exceed these limits. Also, a majority of leases hold you responsible for exceeding normal wear and tear.

Owning vs Leasing – What’s my choice?

You can carefully consider all the above factors and run the numbers depending on your situation. Your ultimate decision is based on your budget and the type of travel you do. Good luck with your new car!

If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.