Consolidate Credit Card Debt The Right Way

Stressed out from trying to juggle large amounts of credit card debt? If you are only able to make the minimum payments your credit card balances, you need help with debt. The best time to start is right now.

Do I Need A Credit Card Debt Consolidation Loan?

One of the main ways to begin get out of debt is to consolidate credit card debt in to a lower interest debt consolidation loan. In order to determine whether or credit card debt consolidation would be right for you, consider these factors:

Do you have multiple cards with long term outstanding balances?
Do you frequently make the minimum payment on your cards?
Is your credit debt increasing over time?
Are you at or close to the limit on one, or more of your credit card accounts?

If any of these factors apply to your situation, you should consider a credit card debt consolidation loan.

How Do I Consolidate Credit Card Debt?

Consolidating credit card debt involves combining all of your outstanding credit card balances into one, lower interest loan. Regardless of the type of credit card consolidation loan you use, your goal should be to lower your interest rate and monthly payment on the consolidated credit card loan balance.

The key to making a debt consolidation strategy work for you is to exercise the discipline to use the savings from the lower interest rate and monthly payment to pay more on the loan principal each month. It also means looking for ways to decrease your other monthly expenses even where you are paying less to service your unsecured personal loan. It is imperative that you live on a cash basis while repaying your credit debt and avoid spending more money than you have.

Debt Consolidation Options For Those With Good Credit Scores

The best options for debt consolidation are available to those with excellent credit scores. It is, therefore, imperative that, at the first sign of financial difficulty that you take steps to consolidate debt. You cannot afford to wait until you have bad credit.

Here are some of the main options for consolidating your credit card debt:

Transfer credit card balances to a lower interest credit card. These interest rates can run as low as 7.50% if you have very good credit.

Use balance transfer checks to consolidate credit card balances. Even now, credit card issuers still mail out balance transfer checks offering a low interest rate for the life of the balance (some as low as 3.9 to 4.9 APR). You will have to pay a balance transfer fee in the amount of 3-4%. Even with the balance transfer fee, it still represents an excellent opportunity to consolidate credit card debt.

Open a home equity line of credit (HELOC). If you own your home, you can take advantage of your home’s equity as a source of low interest lending. Although it is not wise to make a habit of taking equity from an appreciating asset to pay for consumptive spending, you may have no choice but to do so.

Negotiate with your credit card company. It is possible to use the current economic climate as leverage to negotiate balance transfers into one of your lower interest rate credit cards.

These credit card strategies are only available to consumers with good credit scores. Consumers with bad debts or poor credit scores will have to explore other means to achieve their debt consolidation goals. Even if you have bad credit, it makes no sense to procrastinate and do nothing. As your credit debt begins to spiral out of control your efforts to consolidate your credit cards becomes more difficult.

What About A Non-Profit Debt Consolidation/Credit Counseling Company?

A good nonprofit credit counseling company can put together a debt consolidation program and can negotiate credit card debt relief plans for you.

To find a nonprofit credit counseling service, contact the National Foundation For Credit Counseling to find a list of reputable credit counseling and debt consolidation organizations available to you. A good non-profit credit counseling company will often be able to get people out of debt easier than going it alone.

Two Options To Consolidate Credit Card Debt In the current recession, consumers are searching desperately to consolidate...
Credit Card Debt Consolidation Guide If you are only able to make the minimum payments...
How To Use 0% Credit Cards To Eliminate Debt 0% APR credit cards can save you lots of money...
Consolidate Credit Cards? Beware Of New Debt Whether you have two, three, four, or more credit cards,...
Debt Loans: Options For Debt Consolidation When you have built up a large amount of debt...

Related posts brought to you by Yet Another Related Posts Plugin.

Filed Under Balance Transfers, Credit Score, Debt Consolidation | 1 Comment

Tagged With balance transfer, balance transfer checks, balance transfer fee, consolidate credit card debt, consolidate debt, credit card debt, Credit Card Debt Consolidation, Credit Counseling, Credit Score, Debt Consolidation, heloc, home equity line of credit, interest rate, lower interest debt consolidation

Comments

One Response to “Consolidate Credit Card Debt The Right Way”

free creditcard balance transfers | Credit Cards 0 APR Balance Transfers on November 12th, 2009 11:06 am

[...] Bertrandt is an attorney and debt consolidation counselor. Mr. Bertrandt counsels his clients to consolidate credit card debt using the tools found at 0 Credit Cards [...]

Leave a Reply

0 credit cards | Consolidate Credit Card Debt The Right Way