|
|
Fresno debt consolidation loans: use them wisely
|
|
|
|
|
How Much Debt is too Much?
If you are living with credit card and revolving debt on which you can only make
minimum payments, you have too much debt. If you have late or missed payments you
have too much debt. If you are losing sleep or thinking about your debt all the
time, you have too much debt. If you are not enjoying all that Fresno has to offer,
you have too much debt. Debt consolidation loans can be a great solution to this
problem if you use them wisely.
What is Debt Consolidation?
Debt consolidation is the securing of one large loan to pay off all credit card
and revolving debt. You then get one payment which is lower than the combined total
of the former debts. The goal is to free up some cash so that you are not so strapped
each month. If you credit is still great, you can probably get a consolidation loan
on your own, through a credit union or bank, or you could access the equity in your
home thorough a refinance. If your credit is already damaged because of late or
missed payments, you will need to seek professional help from a debt consolidation
firm.
Looking for Help
Be careful as you investigate the large number of debt relief firms out there. And
educate yourself as to the questions you should ask. How long have they been in
business? Are their counselors certified? What are their fees? What services are
offered for free? Do they provide education on personal finance free of charge?
Do they provide follow-up services? Begin your research by looking at Fresno nonprofit
agencies, because they will have the lowest fees and the most number of free services.
The National Foundation for Credit Counseling (www.nfcc.org)
has a listing of all of its member agencies, and membership means that they follow
guidelines of the association, including fee charges. Two member agencies in Fresno
are CCCS of Central Valley and Springboard Nonprofit Consumer Credit Management.
Agencies should provide complete analysis of your financial picture, help with budget
development, provide free education and training, and give you options for debt
consolidation. Often they will establish a debt management plan in which you make
one lower payment to them and they distribute it to your creditors as agreed.
After the Consolidation Loan
Consolidation loans work only if you commit to an end to charge card consumerism.
If you get a consolidation loan and then go back to old habits, you are not solving
anything. Cut up those cards, keeping only one for emergencies. With the extra cash
you have each month, start a savings, so that future emergencies can be paid for
with cash.
Make a game of finding all of the little ways to save money that you can. Take public
transportation (the FAX is terrific!), and plan car excursions carefully to save
gas. Learn to use some of the great outdoor activities that tourists on a budget
use. The Fresno Country Blossom, Fruit, and Wildflowers Trails are great year-round.
You have two fabulous National Parks at your doorstep (Sequoia and Kings Canyon),
and you certainly can find low-cost places to dine if you are set you mind to it.
If you have friends coming to town, point them in the directions of the less costly
accommodations, the ESA, EcononLodge, or Kings Canyon Motel.
Fresno has such great weather - use it to find fun!
|
|
