Debt relief assistance can easily be accomplished by many consumers through simple budgeting techniques that will allow consumers to erase debt in not only a timely manner in most cases, but keep their overall debt low as this can be helpful if unexpected costs arise or an emergency occurs which may require that a consumer take on a high amount of debt, like through credit card use or due to medical expenses. Understandably, consumers who can keep their debt low, budget in a way that helps them avoid excessive spending, and as a result, keep costs associated with interest rates on certain forms of debt affordable as well can do a great deal in terms of helping consumers not only get out of debt faster but, again, avoid problems in the future.
Luckily, there are some indications that consumers are becoming more financially savvy and, according to some, this is a result of the recession and financial strains that many consumers have seen over the past months. A recent report from the Association of Independent Consumer Credit Counseling Agencies stated that a recent online survey found that, “60 percent of respondents planned to use their refunds to pay bills and/or pay down debt. Perhaps even more surprising was that 22 percent of respondents said they planned to place their tax refunds into savings.”
Obviously, when consumers use money, like from a tax refund, to either pay down debt or simply to save, this can point to more benefits in the long run as there are individuals who will obviously take any refund they may get and simply spend it on wants rather than needs. Also, simply using credit cards excessively and only making minimum monthly payments is one of the main practices that advisers often stress consumers to avoid, as this creates excessive amounts of debt that may be unnecessary and the overall cost related to repaying these debts, particularly when interest rates are factored in, is usually a waste of money when consumers do not make necessary purchases or budget in a way that allows them to combat these debts quickly.
As April 2011 has been deemed National Financial Literacy Month, there are some consumers who are finding that healthier financial practices can be difficult to implement, thanks to bad habits that may be in place, but there are benefits that can be gained from keeping credit card use down, as well as, doing more to save money toward future financial goals. While smart financial practices are not always a guarantee against financial distress, as factors like unemployment or medical costs may be difficult to avoid in some cases, consumers who will keep their debt level low, live within a financial budget in relation to their income, and simply avoid spending on credit when saving money to make a purchase could be easily accomplished, often find that if an emergency does arise, it can have less of an impact on their financial life.
While there are resources consumers can use to accomplish either setting more responsible financial practices in place or meeting future financial goals, consumers who, again, put into practice these smart financial habits, budgeting techniques, and debt relief strategies may be able to avoid the need for such options like credit counseling and, obviously, consumers may find themselves in a better financial position in the long run when excessive costs are kept to a minimum and proper saving, investing, and purchasing techniques are used.