One of the challenges for many individuals and couples is the management of credit. Credit seems like an asset, and when utilized correctly, credit can be used effectively and wisely.
Unfortunately, credit is also something that can get out of control. Using credit cards, taking out loans, or relying on lines of credit can result in more monthly debt than consumers can repay. Typically, people in the Victoria area go to top debt consultant services like 4 Pillars for help only after debt is an overwhelming problem.
While the debt consultants at 4 Pillars help to evaluate and provide options for managing the debt, they also provide education. Without the consumer changing the way they approach the use of credit, they are very likely to find themselves back in debt in a few years.
Avoid Carrying a Balance
Using credit cards to earn rewards points, air miles, or rebates is a good idea, but only if the consumer can pay the balance off in one billing cycle. Once the credit card goes into the second billing cycle, interest rates start to decrease the benefits. The interest rate on carried balances has often completely eliminated any benefits or initial savings within a few billing cycles.
Multiple Types of Debt
Another common issue many consumers experience when they come to 4 Pillars is many different types of debt through credit lines, multiple credit cards, student loans, mortgages, and car notes.
Even though the payment on each one may be manageable, when they are combined, they become overwhelming. Through education, debt consultants help consumers to make better financial decisions on the use of credit in all aspects of their life.
