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Hi! It's LaTisha from YoungFinances.com today
I'm going to talk a little bit more about how paid off my $22,000 worth of credit card
debt. I've had a couple of people ask me about the credit counseling service that I used
to help me pay off that debt and so I wanted to answer those questions today. The first question was how did I find them?
I know that there may be some credit counseling services out there that are not very reputable.
There are some that I've heard horror stories so I can completely understand this question.
A friend of mine introduced me to the service. They had great success with it and they
were able to pay off their debt within three years. The service that I used Is based out
of Atlanta. It's a consumer credit counseling service the name of the service is called
Clearpoint. That's the service I used to help me pay off all of my debt. Someone else asked
me, how much did it cost? I had to pay a monthly fee it was a small monthly fee.
I think one
month I paid $35 and then as my payments went down each month than I paid a smaller and smaller
monthly service fee to Clearpoint. So that actually goes hand-in-hand with the next question
which is what with my monthly bill? My monthly bill started off pretty high. I had a lot
of debt that I added to it. I had $26,000 of debt that I added to the debt management
plan. So what they do is they set you up with a debt management plan and help you to figure
out how to pay down your debt and pay off your debt within a certain timeframe whatever
timeframe that you want to do. Typically it's three years and I opted for three years. So what happened was when they were setting up my debt management plan I put all of my
debt on there like I said it was about $26,000 I realized I had doubled up on one creditor
because one of them was already in collections I had two people collecting on the same debt
so once I removed that debt it came down to about 22,000 and then I wanted to pay everything
off in three years so I wanted to make sure that after three years I was completely done
so we worked on a payment that was comfortable and something I was able to make along with making the rest of my payments that I had to make on my budget but something that
would also help me to pay off all the debt within three years.
So the payment that was
settled on at the beginning was $800 and I paid it every paycheck I paid $400 then after
a while it even things started to get a little bit tighter for me where I felt like I wasn't
able to really manage that so all I did was I gave them a call and let them know that
my budget has changed a little bit would they be willing to help me negotiate down to $600
a month and so we were able to work together to figure out how I could do that. I was able
to work with them and they help you create a budget.
That's one thing that they helped
me to do was create a budget to see what I could pay and how I can do this and really
get rid of my debt within three years that was very helpful. And then the last question
is what was the biggest advantage of working with Clearpoint? One of the biggest advantages
is that they contacted all of my creditors and negotiated my interest rates down. In
most cases they were able to negotiate the high interest rates that I had of 22% to 24% and
they were able to negotiate that down to 0% for a lot of my creditors they were also able
to help me remove some of the fees and get fee concessions for me. My debt was pretty
delinquent at the time so they were able to call and negotiate.
So they did all of the
negotiations for me in that instance whereas I might have been able to get some of that down but
and they were really good at that so that helped a lot. It really helped me to pay all of
that debt within three years. Another thing that they did was they were the contact person
for all of my creditors. If I had creditors calling and some of them I it were in
collections all I did was say "hey I'm working with a credit counseling service
and you can contact them if you have any questions or if you want to know what payments are available
to be made because they are handling it all." I don't know what it is not think of something
in the industry where if you're working with a credit counseling service the creditors
they just don't bother you they will call the credit counseling service.
So they called
the credit counseling service and Clearpoint was able to talk to them. I didn't have to worry
about being scared my phone ringing all the time and figuring out "Should pick it up or
not?" Because at the time and I had a lot of debt it was a point where it was very stressful
and I talked about that in the blog post on how I paid off my $22,000 of debt. It was very
stressful. Yeah so that was the biggest advantage them being able to save me a ton of money
on fees, they saving money on interest rates and they were able to contact and talk to
my creditors and be that liaison. So that's my experience with Clearpoint as a credit counseling
service like I said I used them to help me pay off my $22,000 worth of debt.
If you have debt and you
have more questions on how you can pay off debt, your options and maybe more questions
about debt feel free to contact me at YoungFinances.com or you can leave a comment in the box below
just fill it up with any and all of your questions and I will be sure to either answer them in
the comment section or create a video response for you. Make sure you head over to YoungFinances.com
where I've got more information on debt, building credit and getting your finances on the right
track so that you can become a financial success. And finally if you liked this video and it
gave you some good information, give it a thumbs-up! I really appreciate all the support from
you guys and hope to see you next time.
are you tired of feeling overwhelmed by debt do you dream of a future free from Financial stress well you're in the right place welcome to Cashwise owl your trusted source for mastering personal finance today we're diving into a topic that affects millions of people around the world debt management if you're ready to take control of your financial future and break free from the chains of debt then stick around in this video we're going to share 10 debt management techniques that can help you achieve your goals and live a life of Financial Freedom but before we get started make sure to grab a pen and paper because you'll want to take notes on these valuable strategies and don't forget to watch till the end to fully understand each technique and how it can transform your financial situation let's get started the first step in effective debt management is understanding your debt take stock of all your debts including cluding the total amount owed interest rates and minimum monthly payments this comprehensive overview will serve as the foundation for developing your debt repayment strategy a pro tip here is take advantage of free credit reports from all three major credit bureaus to get a comprehensive overview of your debts including any inaccuracies or discrepancies understanding the full scope of your debt will Empower you to make informed decisions as you create your payment plan once you have a clear understanding of your debt it's time to create a debt payoff plan there are various strategies you can use such as the debt snowball method or the debt Avalanche method choose the approach that aligns best with your financial goals and prioritize paying off highin debts first a pro tip here is consider using a debt payoff calculator to explore different repayment scenarios and determine the most efficient strategy for your situation by visualizing your progress and adjusting your plan as needed you can stay motivated and on track to becoming debt-free setting realistic goals is crucial for staying motivated throughout your debt repayment Journey break down your total debt into smaller manageable goals and celebrate each Milestone along the way this incremental approach will help you stay focused and maintain momentum as you work towards becoming debt-free a pro TI here is break down your debt payoff goals into smaller milestones and reward yourself for achieving each one whether it's treating yourself to a small Indulgence or celebrating with friends and family acknowledging your progress will keep you motivated and focused on your ultimate goal of Financial Freedom to accelerate your debt repayment progress consider cutting expenses and increasing your income look for areas where you can trim your budget such as d in out less frequently or cancelling subscription Services additionally explore opportunities to boost your income through side hustles or freelance work a pro tip here is challenge yourself to find creative ways to reduce your expenses such as negotiating lower bills or finding more affordable alternatives for everyday purchases additionally explore opportunities to generate extra income through freelance work or monetizing your hobbies to allocate more funds towards debt repayment don't hesitate to reach out to your creditors and negotiate lower interest rates many creditors are willing to work with borrowers who demonstrate a commitment to repaying their debts a lower interest rate can significantly reduce the total amount you'll pay over time saving you money in the long run a pro tip here is be proactive in contacting your creditors and highlighting your positive payment history and Financial stability by demonstrating your commitment to repaying your debts you may be able to negotiate lower interest rates or more favorable repayment terms saving you money in the long run debt consolidation can be an effective strategy for simplifying your debt repayment process by combining multiple debts into a single loan with a lower interest rate you can streamline your payments and potentially reduce your monthly payments however it's essential to weigh the pros and cons of debt consolidation carefully a pro tip here is before consolidating your debts carefully evaluate the terms and conditions of the consolidation loan to ensure it aligns with your financial goals and budget consider factors such as interest rates fees and repayment terms to determine if consolidation is the right option for you take advantage of balance transfer offers to consolidate high-interest credit card debt onto a card with a lower or 0% introductory APR this can provide temporary relief from high interest rates and give you time to focus on paying down your debt without acre additional interest charges a pro tip here is pay close attention to the balance transfer fee and the length of the introductory APR period when considering balance transfer offers aim to pay off your transferred balance before the promotional period ends to maximize savings on interest charges if you're feeling overwhelmed by your debt or struggling to make progress on your own don't hesitate to seek professional help credit counseling agencies and financial advisors can provide personalized guidance and support to help you develop a debt management plan that works for your unique situation a pro tip here is research reputable credit counseling agencies and financial advisers who specialize in debt management they can provide personal guidance and support to help you develop a debt management plan tailored to your unique situation debt management is a marathon not a Sprint stay committed to your debt repayment plan and be patient with yourself as you work towards your goals remember that every payment brings you one step closer to Financial Freedom and the sacrifices you make today will pay off in the long run a pro tip here is stay committed to your debt repayment plan and and be patient with yourself as you work towards your goals celebrate small victories along the way and remind yourself of the long-term benefits of becoming debt-free finally don't forget to celebrate your successes along the way eyeing off debt is no small feat and each Milestone deserves recognition treat yourself to a small reward when you reach a debt repayment goal to stay motivated and inspired on your journey to becoming debt-free a pro tip here is set aside a portion of your budget for small Rewards or treats When You Reach debt repayment Milestones celebrating your progress will help you stay motivated and inspired on your journey to Financial Freedom there you have it 10 debt management techniques with Pro tips to help you take control of your financial future by understanding your debt creating a repayment plan and staying disciplined in your approach you can overcome Financial challenges and achieve your goals remember it's never too late to start managing your debt and building a brighter financial future thanks for watching Cashwise owl don't forget to like share and subscribe for more valuable insights on mastering personal finance until next time happy budgeting
Hello and welcome to our YouTube channel. Today, we're going to be discussing the top
10 strategies for debt management. If you're struggling with debt, it can be
a stressful and overwhelming situation. But don't despair, there are steps you can
take to get your finances back on track. As always, make sure to Like and subscribe
to the channel to stay up-to-date on all of the latest news. Let's get started! Number 1. Make a budget: The first step in
managing your debt is to understand how much money you have coming in and going out each
month. Make a budget that includes all of your expenses,
including your debt payments. By tracking your spending and identifying
areas where you can cut back, you can free up more money to put towards your debts. Use budgeting tools and apps to help you stay
organized and on track with your spending. Number 2. Prioritize your debts: Not all debts are created
equal. Some debts, like mortgage or car loan payments,
are considered "good" debts because they can help you build credit and improve your financial
situation in the long run.
Other debts, like credit card balances and
payday loans, are considered "bad" debts because they usually have higher interest rates and
can be more difficult to pay off. Prioritize paying off your bad debts first,
as they are costing you the most in interest charges. Focus on paying off one debt at a time, starting
with the one with the highest interest rate. Number 3. Negotiate with creditors: If you're struggling
to make your debt payments, don't be afraid to reach out to your creditors and ask for
help. They may be willing to work with you to lower
your interest rates or negotiate a payment plan that works for you. It's important to be proactive and communicate
with your creditors, as ignoring your debts will only make the situation worse.
Be honest with your creditors about your financial
situation and explain why you are unable to make your payments. They may be willing to help you find a solution. Number 4. Use a debt consolidation loan: If you have
multiple debts with different interest rates, a debt consolidation loan can help you simplify
your payments and potentially save money on interest. With a debt consolidation loan, you'll take
out a new loan to pay off your existing debts, and then make one monthly payment to the lender. This can be a good option if you're able to
secure a lower interest rate on the consolidation loan. Just be sure to carefully compare your options
and choose a lender with competitive rates and fees. Number 5. Use a balance transfer credit card: If you
have high-interest credit card debt, consider transferring the balances to a credit card
with a lower interest rate. Many credit cards offer introductory 0% interest
rates for a limited time on balance transfers. Just be sure to read the fine print and understand
any fees associated with the balance transfer, as well as the length of the introductory
rate period.
If you're able to pay off your balances within
the promotional period, you can save a significant amount on interest charges. Number 6. Consider a debt management plan: A debt management
plan is a repayment plan that is set up through a credit counseling agency. The agency works with your creditors to lower
your interest rates and monthly payments, making it easier for you to pay off your debts. With a debt management plan, you'll make one
monthly payment to the credit counseling agency, and they will distribute the funds to your
creditors on your behalf. This can be a good option if you're unable
to negotiate a lower interest rate on your own. Just be sure to choose a reputable credit
counseling agency that is accredited by a reputable organization. Number 7. Seek professional help: If your debts are
overwhelming and you're not sure where to turn, consider seeking the help of a financial
advisor or credit counselor. They can provide personalized advice and assistance
in finding the best solution for your specific situation.
A financial advisor can help you create a
budget and a debt repayment plan, while a credit counselor can help you understand your
options and provide support as you work to pay off your debts. It's important to work with a professional
who is knowledgeable and experienced in debt management, and who has your best interests
at heart. Number 8. Cut expenses: To free up more money for debt
payments, try cutting unnecessary expenses from your budget. This could include things like dining out,
subscription services, or entertainment costs. Look for ways to save on your monthly bills,
such as by negotiating with your service providers or switching to a cheaper plan. Every little bit counts, so be sure to look
for opportunities to save wherever you can.
Number 9. Increase income: Another way to free up more
money for debt payments is to increase your income. This could be through finding a higher paying
job, starting a side hustle, or finding ways to monetize a hobby or skill. Even small increases in income can make a
big difference when it comes to paying off your debts. Consider taking on additional work or starting
a business on the side to boost your income and accelerate your debt repayment. Number 10. Consider bankruptcy as a last resort: If your
debts are truly overwhelming and you're unable to make any progress in paying them off, bankruptcy
may be an option.
However, it's important to understand the
long-term consequences of bankruptcy, including the impact on your credit score and your ability
to borrow in the future. Bankruptcy should be considered as a last
resort, after you have explored all other options for managing your debts. It's a serious decision that should not be
taken lightly, so be sure to consult with a financial advisor or attorney before proceeding. These are the top 10 strategies for debt management. By following these tips and working with a
financial professional, you can get a handle on your debts and take control of your financial
future. Remember, it's never too late to start making
positive changes to your finances. Thanks for watching, and be sure to like and
subscribe for more helpful financial tips.
What is a Debt Management Plan? And how does it work? Courtesy of
Golden State Debt Management www.goldendebt.org The term “Debt Management Plan” also known
as a DMP is a program that assists in the payment of unsecure debt using the help of a credit counseling agency Some debts that are included in a DMP are Credit cards, Collections accounts, Medical bills, Personal loans, Department store cards, Repossessions Some debts such as a payday loan and secured
debts i.e. car payment and mortgage are not eligible for a DMP. Some benefits of a DMP are consolidated bills
into one monthly payment, Eliminating of late and over the limit fees, Lower interest rate,
Ongoing financial education support, Pay off debt faster. Living with high debt can be overwhelming
and stressful, but it doesn’t have to be. Take control of your debt and reach out to
one of our certified credit counselors for a free financial consultation today
We will have an expert go through your expenses, income and debts, and create a customized
plan for managing your debt If you qualify for a DMP, we will work together
with your creditors to help waive fees, reduce your interest rate, and help you achieve an
affordable, single monthly payment.
Take advantage of our free financial consultation
and get started on becoming debt free. Call us today. Golden Debt Management
800-397-1302 www.goldendebt.org.
How can I handle my creditors if I know I
cannot pay my bills? This is a question that comes up all the time. Now first, let me assure
you, there are many factors that can just reek havoc on your ability to pay your bills,
so you can have layoffs, maybe health or medical issues, maybe some other unexpected crosses.
Those types of situations will definitely and certainly affect your ability to repay,
so don't feel like you are alone, and don't feel like you're the first person that has
to speak with your creditors because you're going through such a crossly situation.
Call
your creditors, let them know that you cannot pay your bills at this point and time, but
also be sure to let them know the reason you cannot pay, and what it is you're going to
do about it. In other words, let them know what you can pay, and when they can expect
to receive payment, and then follow through, it is not appropriate for you to tell your
creditors one thing, and then do something else, they're counting on you to follow through
with what you tell them you would do.
Now if you tell them you can pay a certain amount,
it may be that they're even acceptable to having you pay that amount on an ongoing basis,
if so, you may want to pursue that and make it part of an extension of the loan or debt
that you currently have. Most importantly, you want to be sure and keep your utilities,
and any secured debt, such as your home, your automobiles, or something that you have an
asset setup against. You want to be sure that you keep the payments current on those items.
So far as medical bills, personal loans, or credit cards, those would be the ones that
you first want to negotiate. However, if you find that your home loan, which is usually
your largest loan, if you find that that's going to be unmanageable for you to make your
payments, you need to call them first, call your creditors and let them know what's going
on, and what you plan to do with it.
You want to know how to use your credit card
to save you some money. Well, sometimes you can save money by transferring the balances
of a higher interest rate credit card to a credit card that has a lower rate of interest.
And also, if you have problems making payments, then you may find that one card can incorporate
all your small credit card balances together into one payment each month. And then that
way you would have only that one payment to be concerned with. So you can use your credit
card to save money if you look at it from both of those perspectives..
