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Credit Card Debt is Serious Business

The Total Amount Can Get Out of Hand 

 

Credit cards are convenient and they become a way of doing all kinds of business. This may not seem like too much of a problem, but it actually can be quite serious. We often reach for the plastic when we are making a purchase, and sometimes those purchases are rather small. It may not seem like a major difficulty but there are consequences. You are charged interest on every transaction that involves your credit card. Those interest rates are in double digits, and they add up. Before you know it you’re faced with a real danger to your financial wellness.

Credit Card Use Is Encouraged

It is not always easy to get away from the habit of using credit cards. Retail stores will actively encourage the use of credit cards, because the management knows people will spend more when they use plastic. Little incidentals at the cash register, for example, are often bought on impulse. This adds to the overall debt amount. Stores will go a little bit further by promoting special deals if a person opens up a credit card account, or uses the credit cards for purchases.

While the holiday season is a major period for credit card use, people get into a habit of reaching for the card a routine basis. Failure to make payments on time can result in stiff fees. It is important to find a way to manage credit card debt so that it does not harm a person financially. It helps to have good advice on what to do. Countrywide Pre-Paid Legal Services offers a financial wellness program that can assist.

Some Very Good and Usable Advice

Many times a little financial common sense goes a long way. For example, our counselors are not going to preach a sermon about austerity. They know that people need to have credit cards to make certain purchases. What counselors do instead is explain to a financial wellness plan member how to best manage the debt. People do not like to use cash because they feel it is risky. They’re concerned that they may be robbed and that is an understandable worry. However, there are many times when a transaction costs $10 or less. If you find you are using your credit card too often, perhaps a good idea would be to leave it at home every now and then. You may discover that you are not buying as much, and you are not buying small extras. This is a tip that a counselor will give you. It is only one of the suggestions that can help you gain better control over your credit card debt.

Our counselors want to help the plan member better understand how to manage debt. It can be as simple as setting up a realistic budget, one that does not require unnecessary restrictions. It may even be suggestions like automatic payments online. The intent is to help this person have better control over credit. Gradually, a plan member is able to have better management of credit card balances. This new self-assurance reduces a lot of anxiety.

Countrywide Provides Efficiency

Employers want to help struggling employees, and financial wellness is one way of doing it. Countrywide provides efficient administration of the financial wellness program. This allows plan members to get service as quickly as possible. We also understand that not every organization has the same financial wellness issue. We allow clients to choose what options they would like to have in their plan. It is all about giving the best possible service that helps resolve a problem. We have a number of options that can be considered, and we welcome input. We encourage human resource directors and other decision-makers to contact us at their earliest convenience.

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