American consumers love plastic. It is easy to use these credit cards and safer than carrying large amounts of cash. Retailers like credit cards because people typically spend more when they use them. Special programs and bonus points encourage people to reach for the card when shopping. Unfortunately, the convenience of using credit cards is addictive. It̵7;s a big problem.
The Unnoticed Cost
The interest rates charged by credit card companies are a threat to financial well-being. The rates are usually double-digit fees on purchases, and that adds to an already outstanding balance. The debt is steadily increasing as a consumer relies on plastic to pay for even small items. Anyone can quickly accumulate a five-figure outstanding balance. Action must be taken before it gets out of control.
No one should ignore ever increasing credit card balances. These numbers can lead to choices no one wants to make. However, there are some ways that people can get their credit cards under control.
- Never use credit cards for necessities. Utilities, rent and groceries should never be charged to a credit card. These expenses are usually substantial, and the interest charged adds to the debt.
- Always pay on time. If possible, pay before the deadline each month to avoid possible late payment penalties.
- Consolidate debts whenever possible. Credit card companies offer a chance to consolidate all of a person’s credit card debt at lower interest rates. It’s not a bad idea, but a person needs to remember that once the grace period is over, existing credit card payments may carry older and higher interest rates.
- Negotiate lower interest rates. If a person’s credit score is strong, it is possible to bargain with the credit card company to lower the interest rates. However, it depends on the card issuer.
Seek the right help
A person can use the advice of financial wellness professional. Not someone who is a cable network guru but a person who usually helps people with common money problems. Nationwide Prepaid Legal Services offers help for those drowning in a sea of red credit card ink. Finally, we have a financial wellness benefit that delivers results.
We have a nationwide network of certified advisors who help a client organization’s employees get their finances in order. An advisor will benefit from doing a budget analysis to determine the member’s cash flow for the financial wellness plan. After that comes suggestions on how to trim certain expenses so that money is available to pay off the credit cards.
The counselor can recommend various programs and tactics to eliminate credit card debt or reduce the burden. For example, the professional may know of reasonable consolidation programs. Additionally, paying down credit cards should include an emergency fund so that sudden significant bills can be paid immediately. A nationwide advisor can recommend ways to create these additional savings.
The customer is part of the process
The nationwide financial wellness benefit has several options that a potential client organization can consider. It is important to have a benefit that meets the needs of all employees and not just a few. The best way to ensure that is customer input into the benefit design.
We explain all of our benefits to a potential customer and point out how each one can help employees. We will answer all questions completely without trying to promote one option over another. Then, after explaining everything, he will step back and let the client choose the options that would be included in the financial wellness plan. These are included in the plan document and Countrywide will provide the administration and membership services.
Our benefits aim to take significant domestic burdens off the backs of hard-working employees. People with medical bills, college debt, and even those facing bankruptcy learn how to manage expenses. If you have any questions about what we offer, please contact us as soon as possible. We want to be of service and welcome the opportunity to do so.