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You Need These Top 13 Finance Books To Change Your Life

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Where are you in your financial journey? Maybe you’ve just landed your first job or your company has offered a 401(k). Whatever your journey is, there are tons of books that can help make it easier. Here are some of the best personal finance books of 2018 that can change your financial life.

The Total Money Makeover – Dave Ramsey

If being debt-free is your goal, it’s hard to go wrong with Dave Ramsey’s The Total Money Makeover. His tried-and-true approach is touted for its simplicity and effectiveness, and his brutally honest style doesn’t sugarcoat anything.

Not only can this book help you work your way out of debt, but it also gives you skills for avoiding it in the future. Ultimately, if you are struggling with debt and can only choose one book, this should be the one.

Your Money or Your Life – Vicki Robin and Others

Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence extols the benefits of frugal living, and not just from a financial perspective. It also shows how, by budgeting and saving, you can lead a happier life by having access to more choices.

The book focuses on learning to live within your means while planning for the future. Many people consider it a personal finance must-have. Just make sure you look for the most recent release (currently a 2018 update), as there have been multiple versions of this book over the years.

Personal Finance for Dummies – Eric Tyson

If you don’t know the basics of personal finance, starting with Personal Finance for Dummies is a smart move. Terms are clearly explained throughout, and the concepts are simplified to assist with learning. Plus, a broad selection of categories is covered, making it great for those who need a solid foundation.

The Index Card – Helaine Olen and Harold Pollack

The Index Card: Why Personal Finance Doesn’t Have to Be Complicated, is another book that focuses on the essentials. The tips are highly actionable, giving you clear direction for improving your financial life.

Additionally, the book avoids being long-winded so that you can derive value from it quickly. Plus, its very easy to digest, making it great for personal finance beginners and beyond.

The Automatic Millionaire – David Bach

For those who appreciate simplicity, The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich is actually a one-step plan to help you achieve success. While it almost seems too good to be true, it includes success stories focusing on individuals with modest incomes. Plus, it avoids headache-inducing steps like hardcore budgeting. Even better, you can get started without a six-figure income.

While the original version came out in 2004, it has since been updated. Just make sure to find a recent edition if you want the most valuable information.

Rich Dad Poor Dad – Robert Kiyosaki

Part memoir, part money guide, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! was updated in 2017. The book includes money management tips for adults. It also offers information on helping your kids thrive financially.

Even if you don’t have a substantial income today, or are living paycheck to paycheck, this book can help you start on the path toward wealth.

You Are a Badass at Making Money – Jen Sincero

You Are a Badass at Making Money: Master the Mindset of Wealth is an exceptional book for learning how to evaluate your habits, such as things that may be hindering your financial success. It is filled with anecdotes and easy to understand concepts. It’s a candid and even humorous read that is chocked full of wisdom and insight.

Why Didn’t They Teach Me This in School? – Cary Siegel

A great book for teens and young adults, Why Didn’t They Teach Me This in School: 99 Personal Money Management Principles to Live By covers information that many kids don’t receive while they are growing up. The content is easy to digest and focuses on learning to manage money, ensuring it doesn’t control your life.

The Behavior Gap – Carl Richards

The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money, makes it easy to understand why so many people make mistakes with money. It shows how bad habits can develop, and helps the reader step away from the trappings that may have them stuck. Plus, it makes adopting a healthier mindset about money easier, which is something that can serve the reader for years to come.

The Millionaire Next Door – Thomas J. Stanley and William D. Danko

When most people picture millionaires, they imagine a glamorous lifestyle. However, the reality is actually quite different in many cases.

In The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, you learn about the habits that helped people cross into millionaire territory and achieve financial freedom. Most of their techniques can apply to any person’s life, making this a great personal finance book for any collection.

All the Money in the World – Laura Vanderkam

All the Money in the World: What the Happiest People Know About Wealth, takes on the personal finance topic a bit differently. Instead of stressing pure frugality, the book discusses how to get the most personal value from your money by spending in alignment with your priorities.

Admittedly, it shouldn’t be the first book on most people’s list, especially those who are battling significant debt loads or lack any savings. But, if you have the basics in order, it’s certainly worth reading.

The Little Book of Common Sense Investing – John C. Bogle

Another option for those who have the personal finance basics down, The Little Book of Common Sense Investing explains why index funds are such valuable options. Plus, the information is very easy to understand, making it a great choice for those who are new to investing and want it to feel more accessible.

Money A to Z – Scott Alan Turner

Money A to Z is actually a children’s book. It uses the alphabet to teach kids about personal finance concepts, giving them a solid foundation in their earlier years.

Anyone with a young child should consider picking it up. After all, it’s never too early to start teaching your children good money habits.

What have been your best personal finance books of 2018? Tell us about it in the comments below.

Looking for more great articles? Here are a few to get you started:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How does a debt agreement affect your chances of getting a car loan?

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Sometimes, no matter how badly we want something, we are just not meant to get it for ourselves. One of those things is a car loan. Car loans can help you get your own car to drive around in and allow you to go to places without the need for public transport.

Depending on your situation, it can be challenging to get approved for one. It could be for a variety of reasons, including residency, age, or you might have a bad credit history that can make lenders wary of lending you money.

Luckily, there are still ways you can acquire a car even with bad credit. One of those ways is through a debt agreement.

What is a debt agreement?

A debt agreement is a legally binding agreement between you and the creditor. It also states how much you need to pay them and how often. It’s usually arranged with a fixed weekly, fortnightly, or monthly amount, where they put your current income into consideration.

Another thing a debt agreement does is freeze your debts. That means stopping any addition to it like additional debts, and interest, allowing you to focus on a set amount to be paid back.

Once you have paid the set amount, the creditors will then clear out the remaining balance and give you a fresh start once everything is said and done.

The only downside to this is that it utilises part IX of the Bankruptcy Act, which means that it can affect your credit score for up to five years.

This will be a significant commitment to yourself and your finances, but it does not mean that you won’t be able to afford other things in the meantime. You just need to be able to allocate your money wisely.

Can I get a car loan if I have bad credit?

You can still apply for a car loan or even car finance even if you have bad credit, and are currently dealing with debt agreement. However, lenders will be sceptical of your ability to pay as you are now paying off a debt agreement, not to mention your credit history.

That is why it is a better idea to lease a car if you really need it to drive yourself around. It offers better payment options, and you can trade it in by the end of the lease for a newer model.

What if I’ve completed my debt agreement?

Without a debt agreement holding you back, your chances in getting approved for a car loan have skyrocketed. It shows lenders that you were able to stick with a financial commitment and see it through to the end.

Now, typically, lenders will want you to have cleared the debt agreement 12 months before you submitted your application. But depending on your current financial status, they may be willing to give you an exemption.

Keep your budget in mind

It’s probably played on your account how you can efficiently manage a debt agreement alongside a car loan. It’s not entirely impossible, but you need to be able to maintain your budget evenly between the agreement, the loan, and everything else you need to spend money on.

That is why you need to keep your current budget in check before you add another financial obligation, which can easily offset your payments.

Now that you have a better idea about debt agreement and whether or not you can apply for a car loan while paying one off, keep your options open and don’t let yourself be buried under massive amounts of debt in the future.

The All-Cash Diet – Are You Up to the Challenge?

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all-cash dietAs of June 2018, Americans owed an astounding $1.039 trillion in revolving debt. Additionally, the average American owes about $6,400 in credit card debt alone.

Rising debt loads can be hard to combat. Often, it takes a significant amount of time to pay down these financial obligations. However, you can speed up the process with dedication and diligence.

In some cases, an all-cash diet can make eliminating debt easier. At a minimum, it prevents you from adding to your total, allowing you to chip away at your debt more effectively. You can also amp up the process by setting a strict spending limit.

If you think an all-cash diet is a challenge you can handle, here’s what you need to know.

What is an All-Cash Diet?

An all-cash diet involves using only physical currency to handle your daily expenses. For example, you would only use cash to pay for gasoline for your car, groceries, and similar expenditures.

Fixed expenses, like debt payments, housing costs, and utility bills, don’t have to be paid in cash. Instead, you can handle those electronically, such as through direct debits or with a debit card. However, you want to avoid using credit to pay these costs. Otherwise, you might not be able to lower your total debt load, which is often the primary goal of using an all-cash diet.

How Do You Start an All-Cash Diet?

The first step you need to take is to create a budget. Outline all of your fixed expenses and determine how much income you have left over. Your remaining money is the maximum you can spend on fluctuating day-to-day costs, such as food and fuel.

Next, you withdraw your remaining income as cash. Ideally, you want to divide the money up into spending categories, ensuring you allot enough to each area to cover your needs. You can designate an envelope to hold the funds for an individual category, making it easier to track.

For instance, you may have an envelope for groceries and another one for gasoline. As you divide the money, make sure you are realistic about what you need to spend to maintain a reasonable lifestyle.

Alternatively, you can divide the cash according to the number of weeks you have between paychecks. For example, if you get paid biweekly, then you would have two envelopes and would likely split your money in half, making each one equal in value.

Regardless of the approach you use, there is one additional step worth taking. Certain expenses, like oil changes, come up regularly, but not always on a set schedule. That can make covering these with your weekly or monthly allotments feel challenging.

Instead of using money out of your main spending envelopes, consider creating another one to set aside for these costs. Then, take a small amount out of each paycheck and set it aside in that envelope. How much you need in this category depends on your unique needs.

However, by considering all of the costs you encounter throughout the year, you can come up with an approximate annual total. Then, divide that amount by the number of weeks in a year or the number of paychecks you receive. Now you’ll know what you need to set aside.

Using the All-Cash Diet

Once you have your money in hand, use cash to cover every purchase you make. By doing so, you are functioning on an all-cash diet.

While the premise is simple, that doesn’t mean things can’t get tricky. For example, if you run out of cash for the week, in a category, or before your next paycheck, then you can’t buy anything else until it is time to replenish that envelope. Instead, you may have to get creative about managing your needs, ensuring you don’t rely on credit to cover the shortfall.

Ideally, since running out of money is a possibility, it will make you more aware of your spending decisions. Paying with cash makes shopping seem more tangible, as you can watch your money leave your hands and see that you have less available to make it until the envelope is refilled.

If you want additional value out of the process, whenever you spend money, but the receipt back in the envelope. This will let you review your spending at the end of the week or month, helping you to spot issues that may be hurting you financially.

Often, people using an all-cash diet are less likely to make impulse purchases. This can be incredibly beneficial for individuals who tend to overspend when using plastic.

What About Left Over Money?

In some cases, you’ll discover that there is still money in the envelope when it is time to replenish your funds. When this happens, you have a few choices.

If you don’t have an emergency fund, you can save the extra cash in a savings account. This helps you create a financial buffer against unexpected events, like a large medical bill or car repair.

For those who already have an emergency fund, then the spare money can help you pay down your debt. Send the excess to your highest interest debt as an extra payment, allowing you to lower your total and reduce interest charges.

You can also use the remaining money for irregular expenses, like birthday gifts. If that is your goal, open a savings account to store these funds. Then, when it’s time to make those purchases, pull out the money you need.

How Long Do I Need to Be on an All-Cash Diet?

How long you stay on an all-cash diet is up to you. Usually, you need to consider your goals and choose a duration that helps you achieve them.

However, if you aren’t sure whether an all-cash diet is right for you, consider starting off with one month. This will give you a realistic picture of what living on cash is like, allowing you to assess the process thoroughly.

At the end of the month, review how you did. If you were able to complete the time with little hardship, then remaining on an all-cash diet may work for you.

If you ran out of money or had other difficulties, then review your budget again and go over your shopping receipts. Did you properly allocate your cash? Did you make any unnecessary or impulse purchases? Is a lifestyle adjustment necessary to be successful?

By taking a hard look at your habits, you may find areas where you could save, making sticking with an all-cash diet easier to manage. However, it isn’t uncommon to have to make sacrifices, especially if you were using credit to support a lifestyle you can’t actually afford.

After reassessing, consider staying on the all-cash diet for another month. Then, take a look at how you did this time to see if you made progress.

Even if you don’t choose to stay on an all-cash diet, it’s still a valuable experience. You’ll have a better understanding of your spending habits and should have a more functional budget, making it easier to keep your finances under control.

Have you tried an all-cash diet? Tell us about your experience in the comments below.

Looking for more great money challenges? Here are some articles worth exploring.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

First Student Loan? Use This Money Wisely

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Currently, there are approximately 20 million students enrolled at colleges in the US. And, when they graduate, around 70 percent of them will owe money on at least one student loan. In fact, the average student loan debt owed by a single graduate is over $37,000, based on statistics from 2016.

Most students view student loans as a necessary evil. Without the funds, they can’t afford college, leaving them with little recourse.

However, many students, especially incoming freshman, struggle to use the money wisely. But failing to act responsibly can come with significant consequences, ranging from failing to cover school expenses to increasing debt loads. Since approved student loan uses can vary depending on the kind of loan, knowing the right approach to managing this money is a must.

If you have your first student loan and aren’t sure how to handle the money wisely, here are some tips.

Educational Expenses

The primary purpose of student loans is to cover educational expenses. Federal student loans have strict requirements regarding how you can spend the money. Typically, funds from federal student loans are sent to the school first. This ensures the college receives payment for your primary expenses, including:

  • Tuition
  • Room and Board
  • Fees

After meeting these expenses, you can get a student loan refund from the school. Usually, this is a check that you can deposit in your bank account. Then, you can use the money for other qualifying costs, including:

  • Books
  • Supplies
  • Equipment
  • Personal Computers
  • Dependent Child Care
  • Transportation (Not Including a New Car)

By design, the federal student loan program almost forces you to use the money wisely. You cannot spend the funds on anything that does not qualify. If you receive an amount that exceeds your need, then an adjustment to your student loan may occur, or you have to use the excess to make a payment on your student loan.

Private student loans are different. They aren’t always as restrictive in regards to student loan uses the bank views as appropriate. However, the exact terms vary by lender. You’ll need to read your loan documents to find out how you can use the money.

Additionally, the funds might not go to the school first, though they usually do. In cases where the money doesn’t go to the school, it is sent directly to you. After receiving the cash, you are fully responsible for paying your educational expenses.

While you aren’t under the same restrictions, it’s smart to use the federal student loan guidelines to help you spend the money in the right places. You always want to cover your educational costs first, beginning with your primary expenses and then your other qualifying costs.

After covering those, you do end up with some choices.

Additional Student Loan Uses

Once you handle your educational expenses and school-related costs, you have some decisions to make. However, if you want to use the money wisely, certain options are better than others.

For example, you can send the excess money back to the lender to pay down your student loans. This can help you lower your balance and avoid some interest, ensuring your debt remains as small as possible.

If you have a federal student loan and have an entire disbursement you don’t need, the easiest thing to do is cancel that loan. You have 120 days after the disbursement to handle the process but may need to work with your school’s financial aid office to handle it properly.

For private loans, you just send the money back as a payment. Usually, you can handle this online through your loan account portal.

What About Fun Money?

When you have student loan money that doesn’t have to be spent on educational expenses, it can be tempting to spend it anyway. The idea of a dinner out or a nice vacation during spring break may be enticing, or getting a new wardrobe may leave you invigorated.

The thought of spending the money usually relates to having a little fun, something that can be important in college. After all, earning a degree can be hard, so it’s easy to assume the mindset that you deserve a reward.

But, it’s important to remember that those examples above aren’t smart ways to spend your money.

Student loans are debt. This means you will pay interest on the amount you borrow. Furthermore, the size of your loans impact your creditworthiness, and large debts make it harder to finance other things you may want in the future, like a house or a car.

Plus, the higher your debt, the higher your payment. For example, if you borrow the average amount of $37,000 with a 6 percent interest rate, on a 10-year repayment plan, you’ll be paying around $411 per month. Over the life of the loan, that comes out to approximately $49,300, $12,300 of that being interest.

However, if you don’t use $4,000 of that money (just $1,000 per year) and send it back to your lender immediately, you’ll owe $33,000. The monthly payment then is about $366. You’ll pay a total of just under $44,000 (about $11,000 in interest), resulting in a pure interest savings of $1,300, not including the $4,000 in principal you don’t have to repay.

If you double the amount you send back, making it $8,000, you’ll get a bigger benefit. Then, you’ll borrow $29,000 and have a $322 monthly payment. You’ll repay around $38,600 over 10 years, with $9,600 being interest. That creates a total interest savings, in comparison to the first scenario, to $2,700. When you add in the principal you don’t have to worry about, you avoid $10,700 in student loan debt payments.

There are numerous repayment programs out there and there are even times your loans can be discharged, but don’t use this information to make poor choices, use it to gain more knowledge of paying loans back when the time comes.

Ultimately, limiting your student loan debt is always a smart move. It helps your creditworthiness, lowers your payments, lets you avoid some interest, and can even provide peace of mind.

If you want to be wise with your student loans, only use the money for important educational expenses. Then, if you have any left over, send it back to the lender. Your future self will appreciate your smart thinking and your wallet will too.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Should You Buy Your College Student a Car?

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Preparing for college can be stressful. Oftentimes, many questions arise that you’ve never considered, like should you buy your child a car for college? When it comes to cars and college students, there are a number of things to consider before making a decision.

Financial Considerations

Whether or not your child needs a car at school depends on a number of things. Obviously, you want them to be able to travel to-and-from the grocery store and visit home without any mishaps. However, it may not be all that necessary for them to have a car on campus. In fact, many schools prohibit first-year students from having a vehicle on campus.

This is to promote freshmen to be more involved on campus and not travel home as much but it can have its financial benefits as well.

The average 18-year-0ld pays $3,148 in insurance each year. Annually, you can also expect to spend more than $1,200 on gas, $800 on maintenance, and around $700 on licenses, taxes, and registration. Not to mention that if your child decides to bring a car on campus they will also have to pay for a parking pass as well as other parking costs.

It is also good to consider the financial perks of having a car on campus as well. Although having a car may be expensive, on-campus stores usually charge high prices for snack items. Having a car can help save money on groceries. It can also provide a way for them to save money when traveling home for the holidays. Instead of an expensive plane ticket, they’ll be able to drive their car.

All in all, you will need to weigh out how much you stand to save vs how much you stand to lose when sending your child to school with a car. This should determine whether or not you decide to do so.

Best Cars for College Students

If you’re going to spend the money on it though, it is a good idea to do research and determine which car may be a good fit for your child. Luckily, Edmunds releases a list of best used cars for college students each year. Parents considering purchasing their college student a car should think about the options listed below.

  • 2014 Honda Accord Hybrid: On average, a newer used Honda Accord runs about $16,430. It gets 49 mpg city and 45 mpg highway. It is a popular car amongst college students because of its fuel efficiency and utility (seating up to five).
  • 2013 Volkswagen GTI: The GTI has an appeal to people who love cars. You can get a 2013 GTI for around $13,826. This model gets 24 mpg city and 33 mpg highway.
  • 2014 Mazda 3: Comparable to the GTI, a Mazda 3 is a bit more affordable at an average price of $12,770. It also gets better gas mileage at 29 mpg in the city and 39 mpg on the highway.
  • 2016 Toyota Rav4: For students looking for a bit more space and utility in their vehicle, there is the Toyota Rav4. You can get a 2016 model for around $21,235. It isn’t as great on gas mileage (23 city/30 highway) but you’ll have plenty of space for road trips.

When it comes to finding a car that will be safe and provide value for your student, you’ll want to go newer but used. Each of the options above, along with a number of other used cars may be the perfect fit for your child. The key to finding the right car is determining what will fit your budget, shopping around, and comparing prices as well as weighing needs and wants.

Readers, do you think you should buy your college student a car? 

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How Does Credit Counseling Work and Is Credit Counseling Free?

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As of late 2017, the average American household carries over $137,000 in debt. With the median household income coming in at just $55,322, based on 2016 from the US Census Bureau, many families find themselves struggling to meet their obligations.

When debt becomes more than a household can manage, many seek help. Credit counseling can be a viable solution, but many people aren’t fully aware of what these services provide and whether there is a cost. What people really want to know is this; is credit counseling free?

Is Credit Counseling Free?

Credit counseling can be free, but that isn’t necessarily the standard. Often, the organization charges administrative fees, which can vary dramatically.

Basic credit counseling services, such as household income and budget reviews, are commonly available at no cost. These are educational in nature, giving you a chance to work with a credit counselor to gain knowledge and improve your situation. However, if you elect to use a debt management plan through the service, there can be a cost.

Typically, there is a small setup fee for a debt management plan along with a monthly cost for managing your account. However, the vast majority of reputable agencies keep their prices low. They understand that anyone using their services is struggling with debt, and they don’t want to add unnecessary hardship to a challenging situation.

Often, your setup will be around $50, and monthly fees will be a similar amount. However, some organizations have waivers, eliminating or lowering the cost for those who are in significant financial trouble and can’t afford the cost without harming their ability to survive. In those situations, free debt management plans are possible.

Selecting a Credit Counseling Agency

Credit counseling is available through both for-profit and not-for-profit organizations. You need to find a reputable agency before acquiring any services.Usually, shopping around is the best approach. Research organizations that serve your area to locate the right one for you.

As you start researching, focus on a few key questions. Is the credit counseling agency licensed by your state? Are they accredited? Are the counselors certified?

If you are having trouble choosing an organization, look for members of the National Foundation for Credit Counseling as they adhere to strict standards regarding performance, data security, counselor accreditation, and customer service.

In most cases, going with a non-profit is a better approach as their fees are usually lower. However, not all non-profits are reputable. You still need to make sure they are legitimate.

You can check the Better Business Bureau to learn more about the agency’s reputation. Numerous complaints with the BBB is a red flag. Similarly, our state attorney general’s office can be a good resource.

After you narrow down the list, consider contacting each organization and requesting free information. This can include brochures about their services and educational materials.

If you want to move forward, ask for a written contract. It should outline all costs, available services, and the amount of time the program requires. If they won’t provide details in writing, that is a warning sign of a less-than-reputable agency.

How Does Credit Counseling Work?

After you select an agency, you’ll have an initial session with a credit counselor. This could be a phone call or an in-person meeting. Typically, each appointment lasts at least 20 minutes and can go for up to an hour.

A review of your personal finances gives the counselor information about your situation. After they collect the details, they can help you craft a plan. In most cases, they will assist with creating a budget. They also give other financial recommendations that may improve your circumstances. Often, you’ll receive information about useful tools and additional resources along the way too.

If your situation is especially challenging, they may recommend a debt management plan. Usually, these involve securing lower interest rates on your debts and setting up a new payment schedule. While this can make your monthly payments more manageable, consider this a last resort.

When you enter into a debt management plan, a few things occur. First, having to close the account of any debt you include is common. Most lenders consider it a condition for offering you a lower interest rate. If you go forward, closing a revolving account, like a credit card, can harm your credit score.

Second, you will likely have to make your debt payments to the credit counseling agency, not your lenders. If the organization is reputable, this isn’t typically an issue. They will accept your payment and then divvy the money out to your lenders.

However, less scrupulous agencies may not meet their obligation. They could take your money and not pay your debts on time, or even at all.

Even if you use a debt management plan with an agency, you are still fully responsible for paying back the money. That means, if a credit counseling agency doesn’t send your payments, you are liable.

Other recommendations are also possible. If your debt is insurmountable, the agency may suggest you consider bankruptcy. However, this is extremely rare, as most of these organizations focus on helping you repay your obligations.

Are There Credit Counseling Scams?

To put it simply, yes, there are credit counseling scams. While there are numerous reputable organizations across the country, some people take advantage of those who are looking for help.

There are signs that an agency may actually be a scam. For example, demanding an upfront fee before providing any information or not giving you a written contract in advance are both red flags. Also, making promises that sound too good to be true, like claiming you can “easily” get out of debt, should serve as a warning.

Incredibly high fees are also a reason to be wary of the organization. Legitimate credit counseling agencies don’t want to harm your financial situation. If the cost is going to add to your debt load or make managing your debt payments nearly impossible, then seek out another organization.

Ultimately, credit counseling agencies can be a great resource. You can access free information and assistance to help you improve, and potentially access options that can make your debt more manageable.

However, you must be diligent when choosing a credit counseling agency. Scams do exist, and not all of the organizations are reputable. Take the time to do some research first and contact a few agencies to see which one is right for you. If you think an agency may be a scam, move on to another one. There are numerous reputable organizations out there, so there is no need to take an unnecessary risk by signing up with an agency that makes you uncomfortable.

Have you ever used a credit counseling agency? Tell us about your experience in the comments below.

Looking for more great articles about managing your debt? Give these a try:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.