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Are you facing credit card problems and finding it increasingly difficult to make even the minimum payments? You’re not alone. Numerous factors like job loss, reduced income, unexpected emergencies, medical bills, or divorce can lead to an overwhelming reliance on credit cards.

If you’re ready to take positive steps towards regaining control of your credit card bills and paying off your balances, DebtHelper is here to help. We provide credit card counseling services to help you regain control of your credit card bills and pay off your balances.

Consequences of Making Minimum Payments on Your Credit Card

Making minimum payments on your credit cards can have significant long-term consequences.

By paying only the minimum amount due, you extend the time to pay off your debt, allowing interest to accumulate. Over time, this can result in paying significantly more in interest and extending the repayment period by several years. Even if you stop using the cards, paying off the outstanding balance can take 15 to 25 years.

Making minimum payments can also negatively impact your credit score, making it harder to secure loans or obtain favorable interest rates in the future.

Signs that You May Be Overusing or Misusing Your Credit Cards

  • Increasing credit card balances and difficulty  paying off debts.

  • Relying on credit cards for everyday expenses, such as groceries or bills.

  • Using credit cards to make minimum payments on other credit cards.

  • Not being able to pay your credit card bills in full each month.

  • Applying for new credit cards to cover existing debts.

  • Feeling stressed or anxious about your financial situation.

Strategies to Avoid Credit Card Debt

You can implement several strategies to manage your credit card debt effectively. Start by creating a monthly budget that allows you to track your income and expenses while setting aside funds for debt repayment. Prioritize paying off high-interest credit card debt as quickly as possible to minimize interest charges.

Cutting back on non-essential expenses can also free up extra money for debt repayment. Finally, consider using cash or debit cards instead of credit cards to limit unnecessary spending and avoid accumulating more debt.

Benefits of Consolidating a Credit Card Debt

  • Simplified payments: Consolidating multiple credit card debts into a single monthly payment can make managing your debt more convenient

  • Lower interest rates: Through debt consolidation, you can secure a lower interest rate, reducing the overall cost of your debt.

  • Improved credit score: Consistently making payments through a consolidation program can positively impact your credit score over time.

How Does a Non-profit Debt Management Plan Work?

A non-profit  debt management plan (DMP) is a service we provide to help you regain control of your credit card debt. It consists of three steps:

Credit Counseling

Our certified credit counselors will conduct a one-on-one session with you to review your finances, analyze your spending patterns, and help you create a  balanced household budget.

Plan Creation

If a debt management plan is appropriate for your situation, we will contact your creditors on your behalf. We negotiate to lower your interest rates to industry guidelines, enabling you to pay off your credit card bills on a fixed monthly schedule.

Monthly Payments

Instead of making multiple payments to different creditors, you will make a single monthly payment to DebtHelper. We distribute the funds to your creditors, ensuring they receive timely payments.

By participating in a non-profit debt management plan, you can work toward becoming debt-free in three to five years, avoiding the financial pitfalls of making minimum payments.

Ready to Take Control of Your Debt with Credit Card Counseling?

If you’re ready to break free from the cycle of credit card debt and regain financial stability, we’re here to help. Contact us at (800) 920-2262 to schedule a free credit counseling session and learn how our non-profit credit card counseling can assist you in managing your debt and building a secure future.

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