Credit card usage is a common problem among Americans today. With the number of solicitations received each week in the mail, it is easy to sign up for a credit card and then abuse it. Credit card debt can be a slippery slope that is difficult to overcome.
Once you recognize you have too much credit card debt, you might try seeking a debt consolidation loan to take care of it. The good thing about these loans is that it allows you to pay your debt in one consolidated payment to the company who gave you the loan instead of several to each credit card company. However, you might be paying just as high of interest rates as you were previously on your credit cards. In fact, your interest rate could actually be higher. What you need is a solution that will allow you to save, but still pay in one consolidated payment.
A debt management plan is a type of debt consolidation that is not a loan. Instead, you will retain your original credit card accounts. The debt management company will allow you to pay them one consolidated payment so that they can distribute the funds to each account. You will save money on interest and fees with a debt management plan. You will also have the accountability you need to get your debt paid off in a reasonable amount of time.
Most major credit card companies sponsor these debt management plans by providing financial support to the credit counseling agencies that administer the plans. In addition, they provide benefits such as lower payments and lower interest rates to debt management plan enrollees.
Seek a reliable company to get a debt management plan with. Find a reputable company that has a good record with the Better Business Bureau. Find one that will be able to answer all of your questions and handle all of your unsecured debt. Make sure you feel comfortable with the plan before you agree to it.
A debt management plan with a dependable company is a great way to seek help with credit card debt that avoids the problem of a debt consolidation loan.
Ronnica Rothe graduated Magna Cum Laude from the University of Oklahoma. She is currently enrolled at Southeastern Seminary in Wake Forest, NC.
She is a regular contributor to educational information disseminated through Personal Financial Network. Related information can be found for credit card debt consolidation loans and other plans.