The importance of credit and debt

[cred•it] noun: Credit refers to the ability to borrow money. Some forms of credit commonly used by consumers are car loans, home mortgage loans and credit cards. Those who can borrow money at a reasonable rate of interest are sometimes said to have good credit, while those who cannot borrow such amounts at such rates are said to have bad credit. Debt is money owed to someone else.

Credit can play an important role in your life, but it can also lead to a heavy debt load and a bad credit history that takes years to improve. Whether you’re considering different credit options and want to stay on solid financial ground or have already accumulated debt and want to dig yourself out, understanding the basics is important to successfully managing your finances.

[cred•it] noun: Credit refers to the ability to borrow money. Some forms of credit commonly used by consumers are car loans, home mortgage loans and credit cards. Those who can borrow money at a reasonable rate of interest are sometimes said to have good credit, while those who cannot borrow such amounts at such rates are said to have bad credit. Debt is money owed to someone else.

Credit can play an important role in your life, but it can also lead to a heavy debt load and a bad credit history that takes years to improve. Whether you’re considering different credit options and want to stay on solid financial ground or have already accumulated debt and want to dig yourself out, understanding the basics is important to successfully managing your finances.

Credit & Debt Resources

TIP: Follow the 20/10 rule. Credit cards are loans; never borrow more than 20% of your annual net income and don’t let payments on those loans exceed more than 10% of your monthly net income.

Smart Money Community Services (Budgeting)

SmartMoney Community Services is a program initiative of CityLink Center and provides financial counseling and economic education to underserved individuals in Greater Cincinnati Communities. SmartMoney provides CityLink clients with a Comprehensive Financial Literacy package: SmartDollars and Sense workshops and SmartChange one-on-one financial counseling designed to equip participants with the knowledge and tools necessary to achieve economic self-sufficiency.

Greater Cincinnati Urban League (Credit & Debt)

The Urban League’s Business Development & Entrepreneurship programs help create jobs across our region. Our Small Business Development Center (SBDC), Economic Empowerment Center and the Ohio River Valley Women’s Business Certification programs serve small businesses and minority-owned businesses.

Greater Cincinnati Microenterprise Inc. (GCMI) (Credit & Debt)

GCMI offers a wide range of programs that help you reach your goal of becoming a business owner. If your dream is to own your business the Greater Cincinnati Microenterprise Initiative, Inc. can help. GCMI has developed entrepreneurial training classes specifically structured to help you achieve this goal.

Apprisen (Credit & Debt)

Credit is an important tool for reaching financial goals. However, if life changes or personal choices have found you navigating through too much debt, you may want to explore debt repayment options with one of our counselors. One solution may be a Debt Management Program (DMP), which is designed to help you pay off your credit card, medical and other unsecured debt in a timely manner.

Brighton Center (Credit & Debt)

Budget and Credit Counseling is a one-on-one session to develop a personal budget, money management techniques, repair/establish credit, and help establishing checking or savings accounts.

Apprisen (Credit & Debt)

For over 55 years, Apprisen (formerly Consumer Credit Counseling) has helped thousands of people with credit and debt management, housing counseling and making decisions regarding bankruptcy. Work with a Certified Financial Counselor to develop a budget and action plan to fit your needs and goals.

LifeSpan (Credit & Debt)

LifeSpan offers budget and debt counseling and debt management to those who need help with budgeting, money management skills and credit issues. You and your personal financial counselor will work together to assess your current financial situation, develop a realistic spending plan, establish achievable financial goals, and create a personal action plan for success. Contact them to see how they can help you.

Center for Great Neighborhoods (Credit & Debt)

The Center connects residents with information, benefits and cost savings, and empowers them to develop habits that will create greater long-term financial stability. Services include classes on banking, credit repair, budgeting, and investing to adult resident

Working in Neighborhoods (Credit & Debt)

Empowers people to make informed choices for themselves and their neighborhoods through community building, home ownership, and economic learning.

LifeSpan (Credit & Debt)

If your credit card debt has become overwhelming, LifeSpan can serve as an intermediary negotiating with your creditors to establish a reasonable plan. The repayment plan is called a Debt Management Plan. When you enroll in this plan, you make a single, convenient, monthly payment that is disbursed to creditors on your behalf. Through our online application, you submit preliminary information that is sent directly to a counselor. Within two business days a Certified Financial Counselor will contact you to discuss your situation and provide advice and guidance on possible solutions.