Poverty does seem to be out of control for a lot of people. However, there are ways to handle it and overcome the crisis. If there is one issue that lands people and keeps them in poverty, it is a low credit score. With bad credit, people are stuck in debt. Because of their inability to catch up, they have to pay high charges when it comes to financing. Their chances of getting a job are also smaller. They can’t even get student loans or mortgages. Then you’re stuck in a cycle where they can’t catch up and are stuck with high charges.
Managing Your Debt The Right Way
In Columbus, the average credit score is less than 670. This is even lower than Ohio’s average. One reason that this is important is the difference between a score of a 700 and a score of 600. People who are closer to the 600 credit score range are likely to face $10,000 more of interest for a five-year loan in $25,000 as opposed to people that have a credit score of 700. If you put thousands of people with credit scores of 600, then you have a very expensive total.As you can see, there is a lot of room for improvement. One effort that is being made to improve things involves the joining of Operation Hope with The Columbus Urban League and other local leaders in order to improve the average credit score of Columbus into the 700 range.
The first step is increasing knowledge of finances. For this reason, this week is the first of a four-week class. People are paired off with financial coaches so that they can learn all the secrets to managing debt, build savings and improve their overall credit score. Among the coaches are people who have made sure that around 700 families kept their homes in the previous year. They have also helped people secure a total of $14 million in new mortgages. They have undergone training under a financial expert with tons of experience. He is now providing leadership to the new team.
They will help families and individuals get on track no matter where they are and where they have been. Some families are eligible for free services. Among the sponsors of this program are Franklin County Job, Family Services, Bank of America, Financial Power Network and Chase. For more info on Manageable Consolidate Payday Loans
The message that is being taught is to earn your money, grow your money and own your credit score.