There’s no question 2020 has been a rocky year across the middle class for finances. Many jobs and investments have been lost as Americans look to a more hopeful future. A strong way to prepare for the new year in the transition back to stable financial health is through consumer credit counseling.
Understanding The Credit Crunch –
There are various reasons why people need help with their credit and finances. In some cases, people need to utilize their credit more to strengthen their financial position. College students and entrepreneurs, for example, may need to borrow funds to get their careers rolling. The cost of education has become very expensive, just as starting a new business often requires purchasing expensive equipment and licensing. For these people, credit can be a bridge to a brighter future.
Even though credit can help some people build dreams, it can also cause others to create their own financial nightmares. Investing loan money in a solid plan can build new revenue streams over time. However, using credit to pay for disposable entertainment can cause long-term debt and depression. Venturing into a startup company for the first time can shift from exciting to horrifying quickly without a clear direction forward.
In 2020 there were multiple ways to lose money and drain assets. While the pandemic and subsequent shutdowns played a huge role in damaging the broad economy, signs of financial trouble were evident prior to the outbreak. Both corporate and personal debt were at all-time highs as many restaurants, and small businesses began to close because they couldn’t handle the amount of debt they had.
Another signal of widespread middle class financial challenges was the fact that nearly half of Americans have no emergency fund or savings account. Once the pandemic hit, people suddenly had to be concerned about where their money was coming from. The stimulus check helped, but many people began falling behind on mortgage, rent, and bills. Even though it feels like doomsday to many people, the right move is to seek help from someone who can help avoid further financial fiascos.
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When Losses Pile Up –
Racking up a considerable amount of debt doesn’t have to be viewed as the end of the world. At some point, an individual must limit debt and turn to seasoned professionals for help. It’s a good idea for people to know their options before they take drastic steps to fix their credit and financial problems. Some people simply need tips on how to manage their debt better. At the same time, the more severe cases require a more in-depth assessment that looks into long-term budgeting and planning.
How Credit Counselors Help –
When a person’s income or ability to pay bills becomes uncertain, it’s always wise to listen to experts who have helped people overcome financial trauma. A professional credit counselor can lead a person toward a path of financial recovery and improvement of their overall financial situation through free credit counseling sessions and a Debt Management Program.
One of the best ways an experienced credit counselor can help is by easing the fear and anxiety that comes with financial problems. It’s better to relax and work with an expert than to suffer stress without guidance. In the long run, it’s healthier to develop a sensible plan for paying down debt than to keep letting debt pile up.
Regardless of a person’s net worth, credit score, or income level, there are practical solutions for improving one’s financial state. Even for someone who has just been evicted, there are options to consider. Some companies exist to provide debt consolidation in the form of a Debt Management Program. Other options exist, which can be learned by connecting with a certified credit counselor.
If finances start to create anxiety instead of happiness, make plans for working with a non-profit consumer credit counseling agency such as Advantage CCS before the new year. Once a person decides on professional credit counseling help, they can begin to map out a comfortable plan for financial recovery. We’re always just a phone call or website click away!