What is credit card debt consolidation? Why would one want to use credit card debt consolidation? Is credit card debt consolidation a final solution? Who does credit card debt consolidations? Banks, credit unions, private lenders, card issuers? These questions may seem obvious, but each needs a good answer.
Credit Card Debt Taken Lightly. Face it, plastic is the coin of the realm nowadays unfortunately for many. So many people do not feel the cash slipping from their hands when they use them. Some folks have the odd notion that they are a source of income or someone else’s money. They are too handy when it comes to human impulse. They blur the line between needs and wants. So, debt rolls inexorably out of control. Credit cards that could come in handy at special times or in emergencies are maxed out. Sad.
Snowballing Credit Card Debt. If your credit card debt is causing you trouble, you are probably one of the benighted who pays minimum amounts each month. You are just paying the cost for using the money. You are not paying back the actual loan. It sits there gathering up more interest for you to pay next month. You may find yourself taking out cash advances on one card to pay the minimums on your other cards. If you are doing this on three or four cards, you need to change some things fast. First, get rid of your credit cards. Then take the next step.
Credit Card Debt Consolidation Is Helpful. Basically, debt consolidation involves a lender giving you a loan to pay off all your credit card debt. Then you have one payment usually lower than the sum of all your previous payments. The payment will be at one interest rate often much lower than those on your credit cards. That payment will be due on one day of the month to one creditor. Obviously, a credit card debt consolidation loan simplifies life and makes things less expensive.
Venues for Credit Card Debt Consolidation Loans. Many options exist for credit card debt consolidation. You can refinance your mortgage to roll debt into a new one. You can take a home equity loan. You can get a secured personal loan. You can get an unsecured personal loan. You could work a way to move all your credit card onto a new low or no-interest credit card account. You need to shop around and find the deal that best fits your personal situation. You may find some interesting deals by searching the internet as well, just be very careful for shysters.
Before You Go Shopping for a Credit Card Debt Consolidation Loan. You should gather all your credit card bills, and perhaps other bills, you would like the loan to cover. You should probably check your credit reports so you will know how prospective lenders will be looking at you regarding creditworthiness. You should do this annually anyway.
Be Careful Before You Sign Any Loan. You should feel comfortable with whatever lender you choose and you should have details spelled out. Leave no question unanswered. Check interest rates and terms of payment. Understand that the lower your credit score, the higher your interest rates will be. With diligence and care, you should be able to breathe a sigh of relief after getting a credit card debt consolidation loan.
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ABOUT THE AUTHOR
Melissa Kellett has a Master in Finance and has been a financial consultant for years. She specializes in Loans for Bad Credit people and also in helping people to get approved for Personal Loans, unsecured loans, Guaranteed Unsecured Loans Online, no credit check loans, student loans among many other financial products. Visit her site at http://www.speedybadcreditloans.com
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