No matter what your income, if your expenses exceed your take home pay, and your credit lines are running up, it is time to put together a solid budget and debt reduction plan with a credit counselor.
You do not have to be several months behind on your payments in order to seek the advice of a credit counselor. Get your financial house in order before suffering the damaging effects of late payments.
Unlike a Home Equity Loan, a Credit Counseling Program does not require home ownership, nor does it secure your debts with property. Borrowing against your home without changing your spending habits is a common mistake that people make. The results can be disastrous, and may ultimately threaten your home ownership. Seek the advice of a credit counselor before turning unsecured debts into secured ones.
If you are considering filing for bankruptcy, you should review your options with a credit counselor first. A debt management program may produce an affordable payment, and reduce your interest rates to a level that will allow you to repay all of your debts in a reasonable time frame, all while avoiding the detrimental effects and the stigma that goes along with filing bankruptcy.