Debt Consolidation Credit Counseling In Phoenix

We are living in the age of consumer credit and household debt. People living the United States are waking up to find themselves sinking in the mound of debt that they seem to have created. It is not far fetched these days to find people as much in debt as $20,000.

People want a sure a proven way to improve their credit. This desire is certainly on the rise as people feel more and more pressure as they pile on more and more debt that they cannot afford. Going on a budget seems to be cruel and unusual punishment for many, as they often overlook the value of this system of financial planning. However, the use of a certain type of credit card may indeed help your credit and get rid of the idea that budgets are all bad.

In addition to being extremely helpful, these credit cards also provide consumers with bad credit, who've been denied traditional credit cards and bank account, a way out of their misery. It is common knowledge that here in the United States, there must be two people earning income in a household for a comfortable lifestyle to be maintained. Moreover, if two people are working outside the home, then who is left to do the budgeting and financial planning?

It is said that the way to run a marathon is one step at a time. Let's take our first step by evaluating both pre-paid and secured credit cards and their pros and cons, particular to your situation.

Secured Credit Cards Pros - Opening a secured credit card account is a simple and affordable way to start building your credit. Secured credit cards will also help you improve and rebuild damaged credit. These cards are used exactly like a standard run of the mill credit cards you are familiar with.

Cons - A major disadvantage to these kinds of cards is that you have to put money down in order to secure them. There is generally some sort of deposit that is required with your application. Lots of people find this to be challenging. They also tend to have a much higher interest rate than a standard card, something like 15% or more and can charge you additional fees. In spite of these negative points, they can be answer for those looking to better their credit rating.

Pre-Paid Credit Cards Pros - A pre-paid credit card can be a great way to provide you with the freedom and flexibility of having your own credit card, without having to be in debt. While these cards look and feel like every other credit card, and can be spent in all the same places, these cards require you to put money on the. In effect, you are spending your own money just like cash. The approval process for this type of card is easy and is a definite guarantee.

Cons - If you are looking to rebuild or establish your credit however, beware. These cards may not report your repayment history to the credit bureaus. If the creditor does not report your account, this type of account will not help you improve your credit. By carefully selecting these cards, you can assure yourself that you receive the most bangs for your proverbial buck.

You might also consider that Pre-paid cards cannot be used in all situations. For example: hotels and car rental agencies may not allow you to use a pre-paid credit card to secure your rentals. It's always a good idea to call ahead first and ask each company their policy before entering into any transaction.