3 Financially Fatal Mistakes To Avoid When Planning Credit Card Debt Consolidation

 


Visitors: 158

A successful credit card debt consolidation plan should leave you with fewer monthly payments and less debt. But the harsh reality is, most people end up owing even more debt than they started with because they chose the wrong debt consolidation program.

There is a multitude of different ways to handle credit card debt consolidation; there are debt consolidation loans, services, programs, organizations and counselors available everywhere. Unfortunately, consumers who need credit card debt consolidation the most often turn the first option they are familiar with. This is a fatal financial mistake.

Millions turn to a Debt Consolidation Service to consolidate debt. This is most likely because consumers are inundated with quick and easy credit card debt consolidation promises from these companies through the mail, on TV, on the radio and even via email.

Using a debt consolidation company may be a quick way to get out from under huge monthly payments, but it is not a cost effective decision if you ever want to get out of debt. Consolidation companies will reduce your monthly payments, but they extend the amount of time it takes you to pay off your debts.

Credit card debt consolidation companies will decrease the amount you have to pay each month, but will charge you 10 bucks for every hundred you owe to provide their services. Stacking fees on top of what you already owe is not a smart way to consolidate credit card debt, increasing your debt by hundreds if not thousands of dollars is not the answer.

Another very expensive credit card debt consolidation mistake is taking out a credit card debt consolidation loan. Taking out a personal loan to consolidate debt can be a very costly mistake, especially if you already owe a large amount of unsecured debt. The more debt you have the higher the risk you are to the lender. And if you are a high risk, they are going to charge you a very high interest rate to cover there assets. Its not unusual to see rates as high as 20 to 23% being charged to consumers seeking credit card debt consolidation loans.

Speaking of astronomical interest rates, how high to you think the APR will go on those 0% balance transfer credit card offers after the introductory rate expires? You got it! 22% or higher in most cases. You better read the fine print before you sign on the dotted line and count on these low rates for long term credit card debt consolidation.

Most people considering credit card debt consolidation probably don’t even know they have at least 6 or 7 different debt consolidation options available to them, many of these options will save thousands of dollars in interest and fees and other alternatives will cost thousands.

Want to learn about 3 more ways to consolidate debt even if you have bad credit? Stop by OutOfDebt4Good.com and check out my Special Report: Bad Credit Debt Consolidation and find out how to Eliminate Credit Card Debt for good.

(513)

Article Source:


 
Rate this Article: 
 
Clear Credit Card Debts By Credit Card Debt Consolidation Loan
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Change Your Spending Habits to Avoid Credit Card Debt Consolidation

by: Gibran Selman (August 29, 2006) 
(Finance/Debt Consolidation)

Credit Card Debt Consolidation Loan: How to Avoid Late Payments

by: Gibran Selman (September 01, 2006) 
(Finance/Debt Consolidation)

Credit Card Debt - What Will Happen to You Financially If You Do Not Pay It?

by: Benjamin Wise (January 17, 2009) 
(Finance/Credit)

Credit Card Debt Consolidation – An Effective Tool To Curb Credit Card Debt

by: Apurva Shree (April 03, 2007) 
(Finance)

Credit Card Debt Consolidation - Does Consolidation Or Debt Settlement Make ..

by: Matt Couch (March 25, 2010) 
(Finance/Debt Consolidation)

Benefits Of Using A Credit Card Debt Consolidation Agency To Manage Multiple ..

by: Duran Mueller (June 08, 2007) 
(Finance)

Credit Card Debt Consolidation Loan – Helps You To Consolidate All Credit ..

by: Apurva Shree (April 04, 2007) 
(Finance)

Debt Consolidation - Is Credit Card Debt Consolidation A Good Idea?

by: Ivan Calderwell (March 09, 2007) 
(Finance)

Credit Card Debt Consolidation - Getting Out Of The Nasty Trap Of Credit Card ..

by: Asheesh Mani (December 21, 2007) 
(Finance/Debt Consolidation)

Clear Credit Card Debts By Credit Card Debt Consolidation Loan

by: Eva Baldwyn (August 31, 2006) 
(Finance)