Article provided by: A Debt Coach Credit Counseling Service
How To Know When It’s Time For Kentucky Credit Counseling
Many people get confused about the rationale behind Kentucky credit counseling. We have come across people who don’t fully understand what credit card counseling entails and who needs it. There is a common misconception about the group of people who need credit counseling. Many people believe that it is only meant for those who don’t know how to manage their finances. However, this isn’t always the case. Some others think that credit card counseling is a scam set up to extort funds from unsuspecting people. So, what are the benefits of credit counseling and how does it affect your credit score? Who needs credit counseling?
Factors That Help You Determine If You Need Kentucky Credit Counseling
1) Your Debt To Income Ratio
How much do you earn? How much do you owe? What is the ratio between your debt and your income? We always tell our clients that if the debt ratio falls 15% below the income level, they may not need to worry about counseling. However, if it falls above 15% then they need counseling. If you’re not sure how to calculate your debt to income ratio, we can help you do it effectively. After evaluating your debt to income ratio, we will help you determine if you need to enroll in a debt management program or not.
2) Type Of Financial Challenges You’re Experiencing
The severity of your financial challenges will help you determine if you need credit card counseling or not. Our credit card counseling company is accustomed to handling the trails that come with certain life events and financial challenges. Things like reduced income, increased expenses, excessive spending, divorce, and unemployment are included in this category. Depending on your financial challenges, we can help you find a solution.
3) The Type Of Debts You Have
Another factor that will influence your need for credit card counseling is the type of debts you have. We can help you handle medical debt and credit card debts. We stand as mediators between you and your creditors. We can help you work out a favorable payment plan. Little things like reduced interest rates, and, waived fees can significantly reduce the debt struggles you face monthly.
4) Your Credit Score Levels
Obviously, your credit score will also influence your plan to employ our services. This doesn’t mean that opting for Kentucky credit counseling will automatically improve your credit score. What it means is that it can lead to a debt management program which will eventually help you improve your credit score. So, if your credit score level is low, you should consider opting for our credit counseling. Remember that a low credit score reduces your options especially when you need a loan. So, keeping an average to high credit score is always advisable.
These are some of the situations that may indicate that you need credit counseling. We can help you analyze your financial situation and find out if you need to be enrolled in a debt management program. You don’t need to wait until you’ve lost absolute control of your expenses before you opt for help.