Check Your Mailbox! Here’s How Financially Stressed Consumers Turn To COVID Debt Consolidation

Covid Debt Consolidation

While politicians continue to debate the new stimulus package, millions of Americans are barely getting by. Many people found themselves without a job and had no choice but to make poor financial decisions to survive. Some people stopped paying rent, mortgage, utilities, and car notes. Others started relying on credit cards and retirement accounts to cover the bare necessities. 

Thinking that the pandemic would pass quickly, they continued these practices to the point of financial demise. Now, a year later, many people are dealing with no emergency funds, maxed out credit cards, and ruined credit. Unfortunately, many fear having their homes foreclosed on, getting evicted, or being on the hook for large utility bills. Looking for a way to regain some stability (and their sanity), some consumers turned to COVID Debt Consolidation for solutions. 

Tackling Credit Card Debt

When your credit card is maxed out, you’re missing payments, and the interest and penalties keep piling up, it’s time to devise a plan. You have several options available. What you chose ultimately depends on your circumstances. 

  • Contact Creditors – There’s a wide misconception that you shouldn’t reach out once you owe a company money unless you’re ready to pay. However, that’s not the case. Creditors understand what’s going on in the world right now, meaning they’re more inclined to want to work with you. You can ask about lowering interest rates, removing late fees, and organizing a more affordable repayment plan. 
  • Crunching Numbers – Paying more than the minimum amount is another efficient way to get credit card debt under control. While it may appear you don’t have the money to afford higher payments, that’s not always the case. Many consumers found that when they created a realistic budget and eliminated wasteful spending, that they had extra money, they could dedicate to credit cards. 
  • Balance Transfer Cards – There are credit cards that allow consumers to transfer balances. These cards often start cardholders off with no interest, which gives them the chance to pay down the principal balance faster. There are a few things to keep in mind. You must have decent credit, and you’ll have to pay the balance off within the promotional period, or you’ll be stuck with a high balance and interest rates. 
  • Debt Consolidation – Companies like COVID Debt Consolidation offer low-interest loans to individuals interested in paying off high-interest credit cards. Their outstanding accounts get lumped into one, make it more affordable and easier to manage. 

Relief In Other Areas

Although credit card debt was only part of American consumers’ financial stress, getting things under control provided relief in other areas. 

  • Better Financial Management – With a system in place to tackle credit card debt, people started applying financial management practices to other areas. Creating a realistic budget to free up cash and sticking to their payment plans got positive results. Their credit improved, they got smarter about their money, and they paid down balances faster. 
  • More Money For Necessities – Whether you contact your creditor to create a more affordable payment plan or you opt for debt consolidation, you’re saving a ton of money in interest and late fees. These financial savings were ultimately applied to other necessities. 
  • Peace of Mind – There’s something about paying down debt and managing your finances that gives you a sense of security. You’re not worried about collection calls, your credit history turns around for the better, and you have money to get things you need. 

Financial stress has reached an all-time high since the start of the pandemic. As people do what they can to survive, they consequently create more problems later. Feeling as if they were drowning with no way out, they turned to methods like those discussed above to tackle credit card debt. Learning how to reduce financial pressures and develop positive financial habits ultimately helped many Americans. They saw a positive change in their credit history, eliminated the chaos, used savings to cover other expenses, and found peace of mind. 

Here’s How I Tackled My Debt Without Using My Stimulus Check

Brice Capital debt consolidation company

The federal government decided to help American citizens by providing a stimulus check during these uncertain times. The idea was to give a financial boost to cover things you may need. Most of the people I talked to stated they would use the check to buy food, pay the rent, or dig themselves out of debt. Although these aren’t bad ways to use your stimulus payment, it’s not the route I wanted to take. 

No offense, but $1400 wasn’t going to be enough to scratch the surface of my household debts. Rather than watching the money disappear as quickly as I received it, I wanted to invest in something that would secure a financial future for my family and me. So, I decided to look into other debt reduction methods and use my stimulus money another way. 

Negotiating

The first thing I did was try and negotiate with creditors. As the pandemic has impacted everyone, I was confident that they’d be inclined to help get the account resolved. I talked to them about my financial hardships and asked about other solutions to pay the balances. To my surprise, some companies were willing to remove late fees, reduce the interest rates, and restructure my payments to make them more affordable. 

Debt Consolidation

I decided it might be best to consider debt consolidation for the credit cards with the highest balances and interest rates. I found a reputable site called Bricecapital.com, where I completed a short form and talked with a financial advisor. The agency was able to offer me a loan with a lower interest rate. Brice Capital debt consolidation loans also come with reasonable repayment options, making it easier to fit into my budget. I no longer had to worry about keeping up with multiple accounts, and I was paying more towards my principal balance. Not to mention, it wasn’t long before my credit score started to improve. 

Debt Management Practices

Even though I managed to negotiate some of my debts and consolidate others, I realized the only way to lift the weight completely was to stay on top of my finances. So, I developed positive financial habits and used various tools to help me manage my debt. I found a money management app that allowed me to create and stick to a realistic budget. I also used my calendar to remind me of upcoming bills and set up automatic payments to ensure I don’t miss a beat. 

Invested My Stimulus Check

Since I had developed a way to tackle the debt accumulated amid the pandemic, I was free to invest my stimulus check as I saw fit. Instead of splurging on something that would only provide temporary happiness, I invested in something that would help set my family up for a lifetime. Me and my significant other decided to use the money to invest in real estate. We found an affordable fixer-upper in our neighborhood and bought it at auction for a steal. Since my partner has experience in general contracting, he was able to knock out many of the issues and save us a lot of money along the way. We hope to complete renovations over the next few months and then put it on the market for rent. The rent can be used to create an emergency fund, cover household expenses, or make other investments to keep growing our assets. 

When the government decided to distribute stimulus checks to millions of Americans, I wanted to do more than just pay a bill or reduce my debt. I wanted to invest the money to secure a better future for my family and me. I realized that in order to do that, I first needed to find a way to get my finances under control. Working with Brice Capital and developing positive financial habits helped me get back on track so that I could use the stimulus payment to invest in something greater.

Brice Capital Reviews for Debt Consolidation

Brice Capital debt consolidation

Brice Capital is a great option for consolidating debt to help with your finances. Learn more about whether it’s a good fit through our Brice Capital reviews.

Brice Capital Is Here to Help

Covid has left a lot of people in debt due to loss of work. Brice Capital is one of many lenders who have helped people that are struggling due to overwhelming debt. Many people lost their jobs through no fault of their own. The company they worked for is literally no longer in business. It is not a temporary lay off, it is a permanent life alteration.

Brice Capital reviews are filled with stories of people who were struggling with debt due to the secondary effects of the pandemic and found a path forward. It is among all things possible that you can find the same kind of help. If you find that debt is weighing you down through no fault of your own, See if a Brice Capital debt consolidation is right for you:

Who Is Brice Capital?

Brice Capital does debt consolidation work for people struggling with paying their creditors from month to month. By offering a debt consolidation loan, they make it possible for people to reduce the number of bills they have to keep up with throughout the pay period. Additionally, the payment is reduced, often significantly, from their previous debt service.

What Is Debt Consolidation?

Right now, your total debt is a composite of all the outstanding balances you have with all your creditors such as credit card providers. That could be three or more separate payments you have to make each month not including housing and utilities.

A debt consolidation loan combines those bills into one, easy payment. You make one payment each month and save money in the process. That offers a huge boost in peace of mind, self confidence, and energy. It also contributes in boosting your credit score. As a result of debt and other factors, many have seen their credit score plummet. Fortunately, one can still get debt consolidation for bad credit.

How Does the Debt Consolidation Process Work?

How does debt consolidation work? The process is easier than you think. You first determine if you think a consolidation loan can help you. Then, check out some reviews to find the best debt consolidation product for your needs.

From there, you get a loan equal to the amount you owe to your creditors. Those creditors are paid in full. You make one monthly payment that represents significant savings because you will be paying a lower interest rate. The phone stops ringing with collectors. The threatening letters stop coming. And negative items on your credit report are checked off.

Is Debt Consolidation a Good Idea?

The first thing you need to know about debt consolidation is that it is a loan, like any other loan. A Brice Capital debt consolidation is a loan used to pay off your outstanding, high-interest credit with other lenders. Debt consolidation is a good idea in general. The exact amount of benefit you see will depend on how much you are paying in interest right now.

With an overall lower interest rate, you can save hundreds or even thousands in the long-term. In the short-term, you can save a substantial amount, giving you that bit of necessary breathing room for your budget to come alive. It can also open the door to starting a savings account that can make all the difference when income is reduced.

What Other Benefits Come with Debt Consolidation Loans?

Besides having one bill and one creditor and a lower interest rate, you also gain the positive bump to your credit record for paying off several creditors. If you get the consolidation loan before falling behind, you will benefit from having made on-time payments.

Not long after that, your credit score should take a turn for the better. Making payments on time helps your credit score, even if you have had difficulties in the past. There is no credit so bad that it can’t be improved. Once things start going in the right direction, that improvement happens faster than you might have thought possible.

A potential pitfall to improving your credit score is that you will start getting more and better credit card offers. Those offers will be very tempting. You might use a loan calculator and determine that you are making enough for a new credit card. But you will want to fight the urge. Instead, take the money you save and invest it in an interest-bearing savings account.

If you can wait till your loan is fully paid off, you will be in a much better position to purchase a vehicle. Public transportation is not a viable option in many places. Your prospects for work will increase when you have reliable transportation. Your car payments will be much more manageable when you can pay with a reasonable down payment and a credit score of 700 and above. At that point, many more options are available to you that weren’t before.

How Can Brice Capital Help Consolidate Debt?

Brice Capital is not the end of your financial journey. But it could be a great place to start. If you choose to make Brice Capital the first stop on your road to recovery, they help free you from the oppressive weight of debt so you can breathe again. If you are on a fixed income, have too much month at the end of the money, and frequently have to choose which creditor’s bills will have to wait another month, you should read those Brice Capital reviews and take the next step.

Applying With Brice Capital?

Once you click the link for the Brice Capital application, be prepared to answer a few basic questions. You don’t need exact amounts at this stage. An estimate of your debts and payments will be sufficient. From there, financial freedom is as close as you want it to be. 

Management Tips to Get The Most Out of Your Credit Cards

Couple sitting in the park with credit card

Whether you’re trying to establish or improve your credit history, a credit card is a viable solution. They’re a lot easier to qualify for than a personal loan and can be used as many times as you’d like to make purchases (as long as you continue to pay down the balance). However, all too often, people obtain credit cards and mishandle them, resulting in an accumulation of debt and poor credit history. 

Essentially, the most effective way to reap the benefits of being a cardholder is to be financially responsible. Whether this is your first or fifth credit card, the tips listed below can make credit cards more comfortable to manage. 

Select The Right Card

Not all credit cards are the same. As such, it is essential to do research to determine which is best for you. More than the credit limit, you want to apply for a card with low-interest rates, minimal fees, and perks or rewards programs that you can use to your advantage. 

Review Paperwork

It’s exciting to receive an acceptance offer from a credit card company. However, keep in mind that accepting this offer is like going into a contract with the creditor. In exchange for a line of credit, you agree to repay the balance in full, along with any interests and fees. So, before signing on the dotted line, however, you should review all the paperwork. You want to ensure that you’re aware of what you’re getting into. 

Develop a Management System

To be a responsible cardholder, you must develop a system to keep up with your accounts, due dates, and payments. When you’re unaware of what you’re spending, when payments are due, and how much is owed, you run the risk of missing payments. Missed payments then lead to late fees, penalties, accrued interests, and a negative credit rating. 

Fortunately, there are several strategies and tools to manage your credit card accounts. You can install a debt payoff app that can assist you with payment reminders, automatic payments, and late payment protections to keep your accounts in order. You can also use debt management apps, calendars, and automatic bill pay services through your local bank. 

Make Timely Payments

It can’t be stressed enough how important it is to pay your credit card bills on time. Review your card statement to identify the due date. Then set up automatic payments or put a reminder in your calendar to ensure they are paid by that date. If you’re short on funds for one month, at the very least, you should pay the minimum amount to avoid late fees and poor credit ratings. 

Keep a Reasonable Balance

Just because you have a credit card with a $1,000 limit on it doesn’t mean you should spend the entire $1,000. Most account holders fail to realize that the utilization rate is a factor used to calculate your credit score. A utilization rate is how much you owe compared to your card’s credit limit. Lenders and service providers use this information to determine your ability to handle your bills. Keeping your credit card balance at 35% or lower is advised. So, if you have a $1,000 credit limit, you try and maintain a balance of no more than $350. 

Make Informed Purchase Decisions

When you have an extra few hundred or thousand dollars, it can be tempting to spend it on things you really want. What’s important to remember, however, is that you have to repay the balance with interest. While you don’t have to pay it upfront, the interest and fees accrue over time, increasing your outstanding debt. You could spend years trying to pay off that flat-screen television or that new wardrobe you purchased. So, it’s best to make informed decisions when using a credit card. If it’s not something you can repay in a few months, chances are you should wait. 

Credit cards can be a real gem when used correctly. They can be the foundation for establishing credit, enabling you to acquire anything from loans to affordable car insurance without an issue. To reap the benefits of credit cards, you must manage them responsibly using tips like those provided above. 

Financial Advantages of Having a Credit Card

Shopping with a credit card

When it comes to personal finance, credit cards tend to have a bad reputation. If you were to conduct research, you’d find money blogs and financial experts advise consumers to steer clear of using plastic. In all fairness, this advice is based on the experiences of individuals who misused their credit cards and consequently suffered financially. However, the truth is that when used correctly, credit cards have several advantages. Continue reading to learn more. 

Establishes Credit History

Credit is essential for purchasing products and services. It is a summary of your financial accounts, assets, and money management practices. Whether you’re trying to apply for car insurance or a home loan, your credit history is a determining factor in whether you get approved and how much assistance you can receive. As you might imagine, a person without a credit history doesn’t give creditors, lenders, and service providers much to use. 

Credit cards are one of the first types of financial products you can use to establish a credit history. Many credit card companies have fewer guidelines than banks allowing applicants with no credit history to apply easily. From the moment you get approved, the account is added to your credit report. Creditors then maintain a record of your payments by reporting to the three major credit bureaus every month. 

Builds Credit

It’s not enough to have a credit card on your credit report. If you’re going to get approved for loans and save money on other products and services, you need a favorable credit rating. While several factors determine your rating, making timely payments is at the top of the list. When you use money management practices and tools that help you pay your Sears credit card or your Capital One Mastercard on or before the due date, this is reported to credit agencies, reflecting positively on your behalf. 

Reward Programs

Credit card companies go to great lengths to attract new audiences to their products. Such marketing tactics often include offering rewards programs in addition to a line of credit. Depending on the type of credit card you apply for, you could receive percentages off your purchases, cashback, points towards future purchases, and frequent flyer miles. Some credit cards even offer travel, product, and payment protection insurance. 

Covers Financial Emergencies

While having an emergency savings account is recommended for financial protection, your credit cards can be another nest egg. Should an unexpected expense arise that you don’t have enough money to cover, you can charge it to your card and repay the balance in installments. Using credit cards to cover financial emergencies ensures you can handle the situation instantly to avoid further consequences. 

Fraud Protection

Financial theft and fraud happen all the time. Criminals gain access to valuables and use them to fund their own interests. Victims are left to pick up the pieces. While the odds of retrieving a wallet full of cash are improbable, credit cards are a lot easier. Once you contact your creditor and report a stolen card or suspicious activity, they will provide protection, including closing the card, issuing a new card, and covering the costs of any purchases you didn’t advise. 

Acceptability

For those who love to travel internationally, credit cards are your best friend. It’s a lot easier than trying to acquire local currency. Since most credit cards are accepted everywhere, you won’t have an issue paying for anything from your airline tickets to souvenirs. 

If you held off on applying for a credit card because of all the bad press they get, it’s time to reconsider your decision. Of course, credit cards can cause issues if you take on more than you can afford, max them out, miss monthly payments, and allow fees, penalties, and interest to accrue. However, if you use them to make wise purchases, keep the balances under 35%, and make timely payments, the skies are the limit. If the above financial advantages have persuaded you to want a credit card, ensure that you do your due diligence to select a card that is most convenient for you. 

Avoid These Costly Mistakes When Borrowing Money

When you have dreams of paying down debt, borrowing money isn’t ideal, but sometimes, it’s a necessary step in taking control of your finances. Taking out a loan can help you tackle an unexpected emergency expense like a boss, even if you don’t have the cash on hand to pay for it on your own.

Borrowing money may be a fitting solution to your financial problem, but only if you avoid these mistakes. Make sure you aren’t committing these heinous financial faux-pas before, during, or after taking out a loan.

Mistake #1: Searching without Knowing Your Credit Score

When was the last time you checked this score? If you can’t remember, it’s time for a refresh. Use one of your three annual credit checks available for free here.

Knowing this three-digit number gives you a better understanding of the kinds of lenders, rates, and terms you can qualify for, so you can avoid those that you won’t be able to get.

Mistake #2: Applying for the First Loan Your Find

If your credit check shows you have a low score, it can play tricks with your head. It’s easy to think that you can’t or won’t get approved for a loan, so you might jump on the first payday lender willing to give you the time of day.

As you can see from this helpful resource page, payday lenders make it easy to borrow money online, but they come with quick repayment terms and high rates.

Just like their name suggests, you have to pay back every penny by your payday. This commitment may be challenging if you have other bills to pay in the same time period, so you should only ever use this option when you’re certain you can afford it.

Taking the time to shop around for other options helps you avoid locking into a payday loan you can’t afford. If your credit isn’t perfect, direct lender installment loans for bad credit may be a more manageable alternative, as you’ll have several weeks or months to repay what you owe.

Mistake #3: Borrowing without a Budget

A new study shows 80% of the country uses a household budget, so there’s no excuse for this next mistake. If you have a budget, see how your repayment bills fit into this spending plan.

And if you’re one of the 20% who doesn’t have a budget, no judgements here, but this is a sign you should make one. When you do, you’re looking to see that you can make your repayments on top of your usual bills.

You might have to slash some unnecessary spending during the terms of your installment loan. That’s fine — you can safely chop away to your heart’s content as long as you stick to discretionary spending.

However, if you need to put off essential purchases to afford your repayments, it’s time to go back to the drawing board. If you can’t make a payment without paying another bill late, the installment loan in question isn’t an affordable option.

Bottom Line

Every mistake has a lesson. But when it comes to money, it’s best if you don’t learn them from first-hand experience. Making these financial faux-pas may come with a steep price tag, so avoiding them before you make them could save you some cash.

Keep this in mind the next time an emergency makes it necessary to take out a loan. It could help you borrow better.

Top 3 Auto Loans for Bad Credit

For many of us, cars are something we take for granted. Without cars, our journeys would be so much longer. We’re so used to being able to drive around that without a car, we’d be left clueless.

Especially in rural areas, cars are a necessity. Public transport isn’t efficient everywhere, so many of us need cars to get around. However, cars can certainly burn a hole in your wallet.

Even a budget-friendly car can require an auto loan – it’s one of the more expensive things you buy in life, so it’s important to find the perfect car with the perfect auto loan.

Thankfully, there are many suitable car loans out there, even if you have a less-than-perfect credit score. Keep reading to find out more about the best car loans for bad credit.

Auto Credit Express

Pros:

  • Even applicants with bankruptcy on their record stand a chance of being accepted
  • Can get approved with a 0 down payment
  • Even cars with a high-mileage can get accepted
  • Application only takes three minutes to complete

Cons:

  • You need a steady income of at least $1,500 PCM to be considered

If you’ve got bad credit, it’s not the end of the world. Auto Credit Express specialises in auto-loans for borrowers with a poor credit score – and even people who have bankruptcy on their record, which is something that many other auto loan companies would avoid.

Even if you have no credit history, you could still successfully get an auto loan with Auto Credit Express. Whether you’ve had no direct debits or are a young adult wanting to commit to a car, you won’t be excluded by Auto Credit Express.

Some auto loan companies have a huge down payment, but thankfully, your loan can get approved with a zero down payment! This is perfect if you’re on a budget or you don’t have a huge pile of money to get started with.

You do, however, need to prove that your income is at least $1,500 per calendar month (pre tax). This is understandable as they do need some kind of assurance – especially if they accept customers with a poor credit history.

Blue Sky Auto Finance

Pros:

  • Can borrow up to $30,000
  • May still get accepted if you have no credit history or if you have bankruptcy in your past
  • Some deals have a zero down payment
  • Quick and easy process

Cons:

  • If credit score is below 652 you need to earn at least £1800 PCM

Blue Sky Auto Finance is a quick and easy way to find the perfect auto loan for you. To get started, you simply fill out a single application form and it gets sent off to a list of potential lenders.

In order to get accepted for most of the lender options, you’ll need a minimum credit score of 550. If you have a score below this, don’t be disheartened – there’s still a small chance you’ll find a loan suitable for you. You also stand a chance of finding a loan if you have no credit history – and even if you have bankruptcy in your past!

You can get up to $30,000 with a Blue Sky lender, which is enough for even luxurious cars. As they offer such a large amount, you will need to provide proof of income. If you earn less than $1,800 per calendar month, then unfortunately you’ll need a credit score of 652 or more in order to be accepted.

Cars Direct

Pros:

  • Can get connected to lenders within 24 hours
  • Work with borrowers with recent bankruptcies in their history
  • Competitive interest rates
  • Simple and speedy application process

Cons:

With Cars Direct, you not only get loans, but you can also shop for new and used cars. First, you just need to fill out a brief application form. It will take a couple of minutes to complete, and upon completion, you’ll receive offers from dealers within 24 hours.

Once you’re connected with a lender, you can shop for old, new, and used cars through the dealer – and the customized financing plan will already be in place, which is sure to save time and energy.

If you have a recent bankruptcy, then don’t worry – Cars direct work with borrowers with a poor credit history, as well as no credit history. Some lenders offer a plan in which a co-signer helps you get your auto loan. This will ensure better interest rates and more appealing terms.