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October 11, 2011 —

Deerfield Beach, FL (PRWEB) October 11, 2011

Debt Management Credit Counseling Corp. (http://www.dmcconline.org), a nonprofit charitable organization (DMCC), has published free tips to help consumers prepare for a pay cut. Due to the recent state of our economy, many people have been confronted with an unpredictable loss of income as companies are forced to restructure their workforce and payroll. Layoffs, wage rate reductions and the elimination of overtime are all methods companies are continuing to use to balance their budgets. It is essential that consumers who face the possibility of such financial changes plan ahead, so they are prepared to deal with a lower income if it happens. To assist consumers in developing a plan, DMCC has created and published a free educational article titled How to Prepare for a Pay Cut.

Core to DMCC’s recommendations is the need for consumers to create or update their household budget to make sure that a healthy savings plan is in place. Establishing a savings plan that provides the equivalent of at least 3 to 6 months of income is essential to making sure there are enough funds to cover basic monthly expenses during a period of unemployment or reduced income. DMCC also recommends budgeting to payoff any 401(k) loans that are outstanding, which will have to be repaid immediately if employment is terminated, utilizing employee health insurance benefits to take care of any necessary checkups and medical concerns while still covered, and reviewing cell phone and other service agreements for possible cost reductions. It is wise for consumers to start thinking about the what if alternatives and plan for possible unemployment, a reduction in pay, loss of overtime or a potential pay freeze, stated Jessica Stokes, Education and Research Coordinator for DMCC. Building sufficient savings through budgeting is the key ingredient in any plan to maintain financial stability following a reduction in income.

DMCC offers free budget counseling sessions for anyone who is interested in getting their finances organized; even if the chance of a reduction in income or unemployment is minimal. Establishing a budget is the first and most important step when confronted with an income reduction. DMCCs certified credit counselors will help figure out what can be done to maximize an income and put funds away for savings. DMCC can also help answer questions regarding the repayment of debts on a lower income.

About Debt Management Credit Counseling Corp.

DMCC is a nonprofit 501(c)(3) public charity committed to educating consumers on financial issues and providing personal assistance to consumers overextended with debt. Education is provided free of charge to consumers via seminars, workshops, a proprietary financial literacy program, and a vast array of online and printed materials. Free personal counseling is provided to consumers to identify the best options for the repayment of their debt. Consumers interested in speaking with a DMCC certified credit counselor may call (866) 618-3328 or request help at dmcconline.org. DMCC is a HUD Approved Housing Counseling Agency, is approved by the U.S. Trustee to provide bankruptcy counseling and education, and has an A+ rating with the Better Business Bureau.

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PRLog (Press Release) – Oct 10, 2011 – Who is Best Served by Debt Management and Consumer Credit Counseling? Finding Your Debt Relief Solutions: Debt relief comes in many forms, but all consumers have one thing in common: difficulty paying off unsecured debt or a situation where they have become overwhelmed by creditors and bills that cannot be paid. There is very little else in common between debt settlement and credit counseling other than the clients. Here are some tips about who is best suited for debt management and consumer credit counseling.

Get Started With Debt Management:

http://www.nationaldebtreliefprogram.org/

- If you have the ability to pay more than the minimum payment on your credit card bills, you might be a good candidate for debt management and consumer credit counseling. Debt settlement is best for those who need low payments and affordable options, credit counseling can be less damaging for those who have more money to spare. If there is a financial hardship, debt settlement might be the only option. However, those who just need help managing their debts might be best suited to use counseling to get the most from their debt relief solutions.

Get Started With Debt Management:

http://www.nationaldebtreliefprogram.org/eliminating_cre …

- Anyone who doesn’t own a home or cannot get a second mortgage or equity loan is also a good candidate for debt management or consumer credit counseling. Debt management is going to negatively impact credit history and scores, but has fewer negative implications than debt settlement. If you have the means of taking out a home equity loan to pay off debts, this is usually the better solution because of the lower interest rates and better payment plans. However, some people do not have this option and must rely on other debt relief solutions and bankruptcy alternatives. It just makes more sense to use what you have, and those who have access to better solutions such as home equity loans should never pass up the chance to use them when they can.

- If you lack a credit score that will give you reasonable interest rates you might want to consider credit counseling. If your home equity loan is going to be high interest and you can get a credit counseling plan that makes more financial sense, you should.

- If you aren’t sure that you can afford the monthly payment, you should always choose credit counseling over home equity. Failing a counseling program is far less serious than missing a payment on your home. The slightest doubt means that you should seek other options.

- If you have a problem with overspending or budgeting money, or have taken out previous home equity loans. Even if you’ve already done one equity loan to pay off debts, the credit card offers can keep rolling in because your credit is still good. You will need to re-learn how to manage finances and budget money, which often makes debt management, credit counseling or debt settlement the better option because you don’t have access to credit any longer. Debt relief negatively impacts credit, which makes it nearly impossible to get credit cards. This time can help people learn how to live on cash and without credit while they are repairing their financial situation, whereas a home equity loan just fixes the obvious issues and not the underlying problem.

These are all great tips to help determine which method of debt relief is best for your situation. You need to find what works for you, because no one else can tell you what that might be.

Debt management works fast and is proven to be effective. To learn more and get started, please visit National Debt Relief Program at:

http://nationaldebtreliefprogram.org/

Back in college, I didn’t appreciate the value of money, and spent every last cent I made. To make things worse, I also managed to get approved for 12 credit cards by the time I was 21. Tired of being broke, I needed to find my way to stand out. Rather than finding productive ways to use my money or save it for the future, I decided to blow it all on designer purses and every cute pair of high heels I could find.

I would spend entire days looking for things to buy. I was student teaching and only working one day a week at a gas station. Besides spending all of my money on fashion, I also charged all my food and gas purchases along with anything else I wanted.

Within a year, I racked up $18,000 of credit card debt. I didn’t know it at the time due to purposeful ignorance, but I knew if I totaled up all the card balances, I would know exactly how much damage I had done and would rather be oblivious to it. This was in 2006.

For the next two years, I paid only minimum payments since I couldn’t afford to pay much more than that. The total of minimum payments was about $600 a month, so it was impossible to make any dents in my balances. I began to feel like a hamster running on a wheel. I was making my payments but was never getting anywhere. I was just running in circles.

In 2008, I decided to look into consolidating my debt. I didn’t want to take out a loan but wanted my debt to be one monthly payment with lower interest. I was somewhat leery about the scams out there but found out about Consumer Credit Counseling Services of Greater Milwaukee (CCCS). It is offered through a local reputable healthcare provider and is a part of the National Foundation for Credit Counseling (NFCC).