Credit card debt can be debilitating and lead to overwhelming amounts of stress. Many people have preconceived notions about credit counseling and whether it can actually help them. Credit counseling helps many people tackle their credit card debt and get back on track.
At The Alexandrite Group, we are here to help you with your credit card problems. Let us clear up some of the common misconceptions surrounding credit counseling.
Credit Counseling Will Hurt Your Credit Score
This is probably the biggest misconception about financial counseling. Consulting with someone about your money problems will not impact your credit score. Your credit score is based on information found in your credit report. Meeting for financial counseling is not reported to the credit bureaus.
Credit Counseling is Expensive
A money coach is not out to make your money issues worse than before. You will be saving money by following their financial advice and specifically laid out plans. Compared to this, the amount you would spend on a money coach is negligible. Hiring a money coach is an investment that will help you with your debt. This can save you two or three times the amount of interest you are paying.
Your Credit Situation is Beyond Fixing
Your debt may seem insurmountable. The Alexandrite Group is here to tell you that this is not the case. There are always options available to get your credit situation back to a maintainable level. We work with our clients to make a plan to pay off their creditors. You will also learn valuable lessons on how to stay out of debt.
Credit Counseling and Debt Consolidation Are The Same Thing
Many times, people in debt will be contacted by debt consolidation companies. This is not the same thing as credit counseling. These companies essentially take monthly checks from a client and forward them to their creditors. They pocket a monthly fee to do something you can do yourself. Most importantly, you will not learn anything as you would through credit counseling. This is a classic ‘Teach a man to fish’ situation. To learn more, you can watch this video:
Bankruptcy is a Better, Easier Option
Bankruptcy should only be considered after all other potential alternatives have been examined. For example, a debt settlement can sometimes be negotiated to remove part of your loan. This will decrease the amount you owe and relieve some of your short term stress. However, it can create a tax obligation and can damage your credit. It is important to weigh every options and its consequences when making a plan.
Don’t let your credit card debt consume your life. Getting back on track will take some work but it is doable. Contact The Alexandrite Group today to start working on your financial future.