Credit card consolidation is a serious endeavor that should not be taken lightly. While the information on credit card consolidation that may be found online seems to be more than sufficient, very few resources outline the entire process in an easy-to-understand way. Numerous websites have chunks of information on credit card consolidation mixed with advertising, making it difficult for an average consumer to perceive. To make the process simple, it may be broken down into few easy steps.Summarize Your DebtsBefore making any steps or searching for debt consolidation services online it is important to have a clear picture of all your obligations. Therefore, gathering all your statements and credit card bills and transforming them to a simple table with relevant information is the first thing on your to-do list. Normally, you should have the following information summarized: your accounts, broken down by lender, amount owed, monthly payment, and interest rate, your total debt, your total monthly payments, and your lender contact information. This would help you to have an objective look at the state of your finances.Choosing a Debt Consolidation ProgramGenerally, there are two debt consolidation routes you may take, depending on the total amount you owe and your credit quality.If you have good or excellent credit, taking a loan or a line of credit that would absorb all of your current debts may be your best option. Typically, with everything else being equal, one loan is easier to handle than many: there is only one payment to make that is typically lower than a sum of your current payments. Also, since loans are usually closed-term, unlike credit cards, this would allow you to get out of debt, providing that you would not drain your credit cards once again, within a specified period of time. If your overall debt level is not excessive, and your credit score is high, transferring all your credit card balances to a new card with a low introductory rate may be a great option. For homeowners taking an equity loan may be a low-cost solution, since such loans historically have the lowest interest rates.With bad credit your options may be way more limited. If you have some sort of collateral to pledge, you may take out a secured loan to cover all your existing debts. In case you do not, then you may consider debt consolidation programs offered by nonprofit credit counseling organizations. Instead of granting a loan, they would negotiate your terms and rates with your current lenders, making your payments more affordable. Some even offer services of collecting one fixed monthly payment that is disbursed among lenders.Take Your Time Shopping For the Best TermsOnce you have decided which route you are going to take, it is time to conduct some research. It is most conveniently done online, since most lenders and debt consolidation agencies conduct their business on the Internet. Once you narrow down your options to three offers that look most appealing to you, it is time to follow up with them. Always try to get the best rates and terms possible, as they may affect the payment amounts on your credit card consolidation loan or program significantly.
Credit Card Consolidation, Credit Card, Debt Consolidation, Card Consolidation
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Amanda Hash is a Bad Credit Personal Loans Consultant with more than twenty years of experience. For more information about Military Loans Fast, Credit Cards, Unsecured Loans, Fresh Start Loans, Debt Consolidation, Student Loans and others please visit http://www.yourloanservices.com
Rejected Everywhere For A Merchant Account? We have a solution! Low – High-Risk Merchant Account Specialists. Unlimited Processing at 0%. No Contracts. No Shut Downs. No Set-Up & Application Fees. FREE Gateway Set-Up – Secured Transactions.
Open a New Merchant Account Here Now – OPEN MERCHANT ACCOUNT. PAYMENTS – PERFECTED.