Debt Management Can Be A Positive Thing!
The term "debt management" sometimes has a negative perception with people, but it shouldn't because it involves a carefully constructed plan and shows that the borrower is still willing to repay their debts.
In todays busy lifestyle of "charge now - pay later", people sometimes end up heavily in debt. This often occurs because they only make a small payment on credit cards instead of paying off the balance each month. At times like these, a debt management plan is needed to help these individuals get back on track financially. This will also protect their credit rating should they need to borrow in the future.
Many people are afraid of credit cards and the hidden charges that often accompany them. the cards are not the problem.....mismanagement is! Credit cards can be a powerful tool in managing finances if they are handled properly. You defefinitely should not close the door on this financial tool. There may be problems such as bad credit if your credit card is misused, but you must remember that poor credit is better than no credit.
Debt management will involve good budgeting, a willingness to change bad spending habits, and the common sense to consider a low interest consolidation loan when necessary from a burden of debt.
Why Debt Management is a Positive Thing
Banks and financial institutions always prefer customers to have some debt rather than none at all. This allows them to look at your payment history when considering whether to loan you money. If you did not have any debt, many financial institutions would assume that:
- you lost your job. In today's economy this is very common. People often bypass the credit card applications in this instance becasuse they do not know how they would pay the money back.
- you are not a registered voter. If this is the case at the time of your credit application you may end up with no credit. This can often give the appearance that you are hiding something, or in the country illegally. This makes the banks not want to do business with you.
- you appear to have unstable living conditions. Although this is hard for many people to understand, having debt is preferable because it can somehow determine a person’s stability or instability. Even if you have numerous credit applications that are either declined or approved, having credit application records is still preferable because it signifies that despite the person’s desperation, the person is still willing to obtain a credit and somehow repay it.
- you are going through divorce or seperation. Most people worry about ending up with all the debt in a divorce, but there can be problems for the other person as well. When a spouse is in charge of paying all your credit card and credit transactions, separation from your spouse can also lead to termination or discontinuance of your credit card contract. This also leads to having no debt at all....and no credit from the banks.
- you have filed bankruptcy before. This is a permanent stain on your financial record and when you are trying to obtain a new loan it will normally come out and haunt you.
Learn more at: mydebtguidance.com
In todays busy lifestyle of "charge now - pay later", people sometimes end up heavily in debt. This often occurs because they only make a small payment on credit cards instead of paying off the balance each month. At times like these, a debt management plan is needed to help these individuals get back on track financially. This will also protect their credit rating should they need to borrow in the future.
Many people are afraid of credit cards and the hidden charges that often accompany them. the cards are not the problem.....mismanagement is! Credit cards can be a powerful tool in managing finances if they are handled properly. You defefinitely should not close the door on this financial tool. There may be problems such as bad credit if your credit card is misused, but you must remember that poor credit is better than no credit.
Debt management will involve good budgeting, a willingness to change bad spending habits, and the common sense to consider a low interest consolidation loan when necessary from a burden of debt.
Why Debt Management is a Positive Thing
Banks and financial institutions always prefer customers to have some debt rather than none at all. This allows them to look at your payment history when considering whether to loan you money. If you did not have any debt, many financial institutions would assume that:
- you lost your job. In today's economy this is very common. People often bypass the credit card applications in this instance becasuse they do not know how they would pay the money back.
- you are not a registered voter. If this is the case at the time of your credit application you may end up with no credit. This can often give the appearance that you are hiding something, or in the country illegally. This makes the banks not want to do business with you.
- you appear to have unstable living conditions. Although this is hard for many people to understand, having debt is preferable because it can somehow determine a person’s stability or instability. Even if you have numerous credit applications that are either declined or approved, having credit application records is still preferable because it signifies that despite the person’s desperation, the person is still willing to obtain a credit and somehow repay it.
- you are going through divorce or seperation. Most people worry about ending up with all the debt in a divorce, but there can be problems for the other person as well. When a spouse is in charge of paying all your credit card and credit transactions, separation from your spouse can also lead to termination or discontinuance of your credit card contract. This also leads to having no debt at all....and no credit from the banks.
- you have filed bankruptcy before. This is a permanent stain on your financial record and when you are trying to obtain a new loan it will normally come out and haunt you.
Learn more at: mydebtguidance.com
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