Consolidating credit cards – Ridding yourself of the stress

If you have been using credit cards as per your choice, you may already have fallen deep into debt. So, what now, when you already have incurred quite a lot of debts? What are the options which may be helpful enough for you solve the credit card debt issues? Though there are different debt relief options, like that of credit card debt settlement, consolidating credit cards, credit card debt management and so on, you will have to try and change your spending habits.How to Consolidate Credit Card Debt and Save Money

How to consolidate your credit cards

In order to consolidate your credit cards, and becoming debt free, you can have two main options. One is, you can consolidate the debts of your own, or else, you can also try and get the help of a debt consolidation agency.

Do it Yourself credit card consolidation options:

Taking out a debt consolidation loan – A debt consolidation loan can be helpful for you to consolidate and pay down the credit card debts. You can take out either a secured consolidation loan, or an unsecured one, as per your need. The process which is followed with regards to taking out a consolidation loan is same, as that of obtaining any other forms of loan.

Trying out balance transfer – Balance transfer is the option in which you will be required to transfer the balance from all of the other credit cards which have high interest rate, to a credit card which has lower interest rate, in comparison to the other credit cards. There is also another option, with regards to balance transfer. That is, you can transfer the balance to a new credit card that is making 0% balance transfer offer. However, in this, you will be required to try and pay down the debts within the offer period.

Getting help from debt consolidation agency:

When you go for help to a debt consolidation agency, they start analyzing the credit card debt issues you have been facing. In addition, they also start negotiating with your creditors, in order to be able to lower the interest rate on your credit cards.

As the interest rate gets lowered, it becomes easier for you to make the payments, so when the counselor becomes successful in getting the interest rates lowered, he is going to ask you to start making the monthly payment. You will be required to make the payment to the consolidation agency, and they will then forward the money to your creditors.

Now, you must not go back to old spending habits. If you develop the habit of spending money uselessly, then there is no point in consolidating credit cards. This is because a bad spending habit is very hard to shed off and will put you back into debt problems. 

If you’re saving for a down payment and just need a better plan, give us a call! We’d love to help get you on the right track to home ownership.