5 Reasons You Might Want to Consider Credit Counseling
1. You’ve Found Out You're a Victim of Identity Theft
While I think we all know not to give our personal information to that Nigerian Prince that emailed us, identity theft can still happen even when we're being careful. I've personally had my bank reach out on two separate occasions because Target had a security breach that included my personal information. I was fine outside of one purchase (the bank ended up crediting it back to my account) but it shows that even retailers that we think are trustworthy are at risk of security breaches.
While I knew what happened in the above example, it's not unheard of to find signs of identity theft only when looking through your credit info.
If you fall into this camp you might want to consider talking to a trusted credit counselor to help remedy your situation.
2. A Bad Credit Score Makes Life More Expensive
If you have a great job and a so-so credit score you will likely still qualify for a car loan or a new credit card - but at a much higher rate than someone with the same salary and a good credit score. An extra $30 a month on your car payment may not seem like a lot, but that's an extra $3,600 in interest in ten years.
In this case, you'll definitely benefit from consulting with a credit counselor before you make a large purchase like a car or a house.
3. You're Thinking About Filing for Bankruptcy
Bankruptcy should always be your last option. If you're even starting to consider filing for bankruptcy talk to a credit counselor ASAP. They might be able to work with creditors to lower your monthly payments and interest rates so that your bills become a little bit more manageable.
4. You've Made a Lot of Financial Mistakes in Your Past
Were you the sort of person that just forgot to pay your credit card bills on time when you were in college? Did one of those cards accidentally end up in collections? It's the sort of thing that can happen when you're young and don't think about the long-term repercussions.
Even if you've spent the past few years doing everything right, if you're only in your mid-twenties now it's probably continuing to tank your credit score. In this case, it would be smart to talk to a credit counselor so that you can get your life back on track.
5. You Want to Create a Debt Management Plan
Let's say you can manage to pay all of the minimum payments on your twelve credit card bills with no problem. You might think that because you are nowhere near needing to file bankruptcy that a credit counselor isn't right for you.
A credit counselor can help you find a solution to make paying off your debt easier and more attainable for your personal situation.
If you fall into one of the above categories and would like to explore your options further with a credit counselor you can click here to learn more.