How To Consolidate Credit Card Debt

How To Consolidate Credit Card Debt

How To Consolidate Credit Card Debt

If you have made the decision to take some action and get out of debt using debt consolidation, there are some things you should know before you go through with it. Some of the main things you want to find out about cosnolidating your debts is "will debt consolidation help?" and "how much can you save with debt consolidation?" Find answers to these questions and more here at How To Consolidate Credit Card Debt.

What are some the best ways to consolidate debt? There is more than one way to consolidate your bills. You can trust a third party company like CuraDebt and have them combine all your bills into one low monthly payment and work on getting your interest fees reduced and eliminating annoying debt collection calls, along with getting some fees waived. One of the biggest things they can do for you is get your monthly payments lowered. This can provide you with extra cash in your pocket each month to pay the other outstanding bills.

Find Out How Much You Can Save With Debt Consolidation:

The good thing about working with these reputable companies is they have been around longer than the fly by night companies who are trying to get into the business and take as many people's money as possible and then disappear leaving you worse off than when you started their program.

Debt consolidation and other debt elimination programs like debt settlement are ripe opportunities for scammers. You have to be a little more careful when trying to use a company that makes big promises about how soon you can become debt free.

But used effectively, you can bundle all your debts together and get one low monthly payment and get all your debts paid off faster than if you did it on your own. You will save thousands in interest and become debt free. As long as you maintain discipline to stick with the program you choose and make some much needed changes to your spending habits.

So how to consolidate credit card debt?

You can go with a balance transfer card with a lower interest rate. Back in the day when banks were offering a low interest credit card this was a good deal. You could get balance transfer rates that lasted for the life of the offer. Now with the banks getting more strict about lending, this strategy may not work so well. The credit card companies have now started charging up to 4% of the transfer as the fee. This can significantly eat into any savings you may be hoping for.

You can do it yourself. You can downsize your lifestyle to the bare minimum, eat ramen noodels and cut your expenses as much as possible to save money to pay towards your debts. You can sacrifice for a year or two and become debt free and then live like you want when you are done.

You can go with a consumer credit counseling service, ideally a non-profit one, who charges a low fee, around $25-$50 a month to consolidate your debts and deal with the creditors on your behalf. A recommended company who has a strong reputation is CuraDebt. They have helped almost 5 million people get out of debt. You can talk with each company for free with no oblidation and see how much you can save with each program. Get a free debt consolidation quote from each company and go with the one you feel more comfortable with.

One way you want to avoid is by using a home equity loan or second mortgage to consolidate your debts. You take unsecured credit card debt and make it secured, putting your house up as collateral if you run into one of life's emergencies and you cannot afford to pay your bills. So I would recommend using your home equity as a debt consolidation loan as a last resort.

Here's some common questions people ask when trying to find out how to consolidate credit card debt:

Can you consolidate credit card debt if you have bad credit?

Yes, not all consolidation programs involve loans. Many do not check your credit. And since you are looking into debt consolidation they can already figure you have bad credit in the first place. With bad credit you will not get a low rate balance transfer offer so that option is out.

Can you consolidate credit card debt if you are past due on some credit cards?

Yes, you can still consolidate your debts. Many credit card companies will recommend a debt management plan to get you back on track as you start to fall behind on your bills. You will not get a debt consolidation loan with a low rate if you are behind on your bills because you will have a low credit score. There are still debt consolidation programs for you.

How much should you pay to consolidate your credit card debt?

No more than $50 a month to consolidate your debts. The fee can vary from state to state but you should not be paying a lot for a company to take your payments and send them to your creditors. That's why it helps to get more than one debt consolidation quote when looking at your options of consolidating your debts. They all offer free no obligation quotes so there is no harm in getting them.

So now what, how do you get started?

Get a free debt consolidation quote from CuraDebt. They offer you free counseling sessions to discuss your personal situation and find a custom solution for you. There is no obligation. Find out how much you can save with debt consolidation.