Do You Need Debt Management?

How does anyone know if they need debt management help?  Are there signs that tell you when your debt is unmanageable?   You bet there are, and unless you see the signs and make the necessary changes to your debt balances, you will pay a high price for that debt.

The Signs That You May Need Debt Management

#1  Sign – Add Up Your Credit Card Debt

Do you know how much your credit card debt is costing you?  Take the time right now to add up your credit card debt.

If your credit card balances are $10,000 or $20,000 or more, the interest rates are at 20% or more, you could be paying $500 per month just on interest alone.   Five hundred dollars a month equals $6000 a year.  That’s right, you could be paying or wasting $6000 a year on credit card interest payments.

Unless you make a monthly credit card payment of more than $500, you are not even paying down the credit card balance.   In this type of payment cycle, you will never pay down your credit card debt.  So if you are at the point where you are not paying down your debt, you need debt management.

#2 Sign – Your Loan Requests Are Denied

If you are denied car loans or a mortgage loan, you need debt management.   Lenders generally do not like to deny anyone a loan; but they will if they feel that you are a high risk.

When your debt ratio is too high, the lender feels that you are a risk for defaulting on your loan.   Lenders do not want to extend a loan to you just to get it back.   Your high debt balance could cost you a mortgage or car loan.

#3 Sign – Your Insurance Premiums Are Outrageous

Insurance companies use credit scores to determine premiums.   If your debt is dropping your credit score too low,  an insurance company assumes you are a high risk.   A high risk to an insurance company means that you will file too many claims.   Claims cost insurance companies money.   You may want to look into debt management help if your insurance premiums seem outrageously high.

Where To Get Debt Management Help

Credit Repair Agencies

High Cost of Debt and Debt Management HelpThese credit repair agencies exist specifically for the purpose of helping those individuals who are too far in debt to dig themselves out by themselves.   If you need help with your debt, that’s okay, find a way to get help.   What is not okay is if you are in need of debt management help and stay in denial without getting help.   If you continue to dig yourself deeper into debt, you may never be able to get out of debt.

Credit Repair Help

Credit repair help is not hard, taking the first step and calling a credit repair agency is the hardest part.   Just be sure to get everything in writing, ask for a copy of the contract.   Also be mindful of the fees that you may be charged, the credit repair agency is not working for free, they will charge you.   Shop around, find a credit repair agency that charges a fee that you are comfortable with.

Improve Your Credit Score

You can improve your credit score without the help of any credit repair agencies.  The best ways to improve your credit scores is to avoid late payments, missed payments and maxing out your credit card limits.

Strive to reach a credit score above 750.