How to reduce credit card debt
Personal
Loan or Repayment Plan
Here are benefits of using a professional nonprofit
debt relief company:
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"First,
until you pay off your debt, all your credit card accounts will be frozen. It's
a minus. However, this keeps you from making new charges, which is one of the
biggest pitfalls of debt consolidation on your own.” says Lewis-Parks.
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In
addition, the credit counseling team will help you organize your budget. This
will make it easier to manage your money and live without loans. Such
cooperation with a nonprofit company won’t damage your credit as long as the
plan is set up correctly and you pay your payments on time, she says.
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Fees
charged by the agency are based on a person's budget, how much they owe, how
many credit cards they have and so on. The average customer pays about $50 a
month, she says. Although fees vary from state to state, they are limited to
$79 per month.
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The
good news is that even in the situation described, the creditor in question
should consider avoiding bankruptcy, says Lewis-Parks. “You shouldn’t damage
your credit until you completely pay off everything you borrowed,” she says.
