Consolidate Your Credit Card Debt With or Without a Loan


Visitors: 156

Credit Card debt can be consolidated by using a debt consolidation loan. A debt consolidation loan is an excellent solution but is not always available for everyone. However, debt consolidation agencies have a battery of options for reducing credit card debt being debt negotiation their first and most powerful weapon.

Credit Card Debt Basics

The problem with credit card debt is that it is easily accumulated. Due to the flexible nature of credit cards and due to the fact that they are literally within the reach of your hands, using them when you lack the cash is very tempting. However, if you lack the discipline necessary to use them you’ll eventually find yourself unable to pay the minimum monthly payments.

Moreover, credit card financing is extremely expensive. Probably the only source of finance that charges higher interest rates than credit cards are payday loans and cash advance loans. Thus, debt accumulates easily due to the high interest rates, fees and costs charged for using the credit card to finance purchases.

Debt Consolidation Loans

A debt consolidation loan is used to cancel all debt on your credit card balances and spreading it over a long repayment program with low and affordable monthly payments due to a significantly lower interest rate. This is an excellent solution to eliminate credit card debt as long as you don’t begin using your credit card again to finance purchases. Otherwise your credit card debt will begin to accumulate once again and you’ll end up in a worse situation than before

Debt consolidation loans however, need to be approved and thus, your credit score has to be good enough so you can qualify. You can always resort to a home equity loan which can reduce the credit requirements necessary for getting approved for a consolidation loan. However, if you don’t have sufficient equity and your credit score is low, you’ll have to resort to other means.

Debt Consolidation Agencies

A debt consolidation agency will contact your creditors and negotiate with them reductions on your debt. They have expert negotiators that can agree with your creditors: lower interest rates, debt refinancing, waivers, etc. These agencies will also help you make a budget and control your spending giving you tips on how to spend more efficiently and how to get more out of your money.

They will also offer you different options for debt reduction like using your credit cards to reduce your debt by taking advantage of 0% promotional periods and 0% Balance transfers. You just need to make sure that if they will handle payments on your behalf, they provide you with the corresponding receipts. Don’t leave everything up to them, make sure they are actually doing their work as there are many scams out there and you can never know.

Kate Ross is a professional consultant at Speedybadcreditloans with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. Visit her Website and get more articles and smart tips on this and other financial issues.


Article Source:

Rate this Article: 
Consolidate Your Credit Card Debt
Rated 4 / 5
based on 5 votes

Related Articles:

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

by: Apurva Shree (April 04, 2007) 

Consolidate Credit Card Debt And Eliminate Debt With A Home Equity Loan

by: Cornie Herring (February 25, 2007) 

Homeowners Consider Second Mortgage Loan to Consolidate Credit Card Debt Prior ..

by: Lynda Nelms (June 29, 2006) 
(Finance/Debt Consolidation)

Credit Card Debt Consolidation - A Sensible Way to Consolidate Your Credit Card .

by: Linden A. Walhard (May 15, 2007) 

Debt Relief Companies - Best Ways to Consolidate and Then Eliminate Credit Card .

by: Matt Couch (December 10, 2009) 
(Finance/Debt Management)

Eliminate Debt Government Grants Can Help You Consolidate Your Credit Card Debt

by: Bryan Burbank (June 20, 2008) 
(Finance/Debt Relief)

Consolidate Your Credit Card Debt - Reduce Your Debt By Following These 3 Rules

by: L. Sampson (March 13, 2007) 

Find Out How To Consolidate Credit Card Debt Now - Debt Relief

by: Bryan Burbank (April 18, 2008) 
(Finance/Debt Consolidation)

Credit Card Debt Elimination - When To Consolidate Credit Card Debt

by: L. Sampson (July 21, 2006) 
(Finance/Debt Consolidation)

Consolidate Your Credit Card Debt

by: M. Janet Williams (July 28, 2005) 
(Finance/Debt Consolidation)