Financial Planning

If you are determined to get out of credit card debt, you will find that it is more than possible. The first thing you should do is get a free quote. But why just get one when you can attain many debt consolidation quotes to decide on the best one. Most companies that deal with debt consolidation will give a free price quote to new users of their services. If you look, you will find that there are free debt consolidation quotes and ones that they will charge you for, both coming from reputable companies. Keep looking for the free quote that comes from one of these reputable companies.

Do your Homework to Find out a Company’s Reputation and Success Rates

Do your homework before contacting a company for their services. Search through the companies policies and other reports. If you have to, visit a consumer forum online to find out what other people are saying about their services.

Reputable Companies Love to Answer Your Questions

Another good source of information is a government regulatory agency. If the company you are researching is not listed with this agency, don’t consider it any further. Good companies will be listed with the government agency and will welcome any questions that you may have for them. They expect to be asked about their reputation and are normally proud to tell you about it. Additionally, you might be able to acquire a better rate if you also use there debt consolidation services as well.

Don’t Let Teaser Rates Suck You In

Don’t fall for the attractive interest rates that many companies try to lure new customers with, make sure they can back up what they say before agreeing to do business with them. There are so many companies available online for free credit card debt consolidation loans that you will need to be careful to only choose the good ones to work with. This will either be the first step to your financial freedom or the beginning of the end for your financial history, so remember to choose wisely.

Too many Americans are paralyzed and overwhelmed by their debts. The desire to get out is real, but as bills come in and money goes out, hopelessness kicks in and making drastic change feels incredibly overwhelming…

For all people who are in debt this process will continue until they either A) pay off what they owe and stay out or B) file for bankruptcy and later be in a great spot to make the same mistakes!

For the motivated person who is willing to do what it takes to get out, here are 3 ways that can get you COMPLETELY out of debt.

1.) Put A Realistic Budget Together And Follow It

A wise man said: “You’ll either tell your money what to do beforehand or it will do what it wants afterwards”.

So many people I talk with say “I’m already spending as little as I can… I don’t need a budget”… I guarantee that is not at ALL the case… you’ll be surprised at what you see when your expenses are outlined on paper.

Don’t get all complicated and technical with crazy spreadsheets and software… just get out a piece of paper and write down all the regular monthly expenses you can’t do without, including your debts.

Now allocate your income to those expenses and *stick to it*!

2.) Negotiate A Lower Interest Rate With Credit Cards

Many people don’t know this but 99% of the time your credit card company will give you a lower interest rate just by your asking for it!

Why? Because there’s *so much* competition out there and they want to keep your business. If they say “no”, tell them another company made you an offer for a lower rate! (You wouldn’t be lying… those offers are very easy to find and they know it!)

3.) Consolidate Your Credit Card Bills Into One Payment

There are plenty of companies out there that will call each of your credit card companies, negotiate a lower interest rate and even lower balance payment, and put them all into one bill for you to pay.

No more having to organize multiple credit card bills and pay them separately!

Note: Consolidation is not for everybody. Make sure you talk to a trusted financial advisor first!

There are an equal proportion of people who keep a close eye on their credit report and credit score and those who don’t. Some of them would have been shocked to find a hefty credit amount, only after they lost the source of income or had limited means to make the payment. If you are one of them, scrutinize the details in the credit report and go for a credit repair.

Credit report can be obtained from one of the consumer reporting companies like TransUnion, Equifax or Experian once a year. Once you get a free copy of this report, analyze it minutely and pick up the incorrect transaction or credit statement. Send a letter to the consumer reporting company, raise a dispute for the incorrect items and demand for a credit repair. The consumer reporting company verifies the dispute and checks it against the records available in the credit card company. However if the legal complications are not easy to understand it is recommended to refer a credit counseling agency.

Credit counseling is a debt help solution extended by non profit organizations to repair your credit score. They help you eliminate the incorrect items from the credit report and reorganize it to set the credit score correctly. This debt help solution is not only sought for credit repair but for upgrading the financial know how as well. Credit counselors dedicate ample time to understand your fiscal status, loan taken, the secured or unsecured debt you owe, total income of the household, your budget planning etc. They help you restructure the budget and handle debt better, also recommending debt management program if required. They choose either online session on internet, on phone or in person to communicate with their clients. The training is mostly in the form of guidelines and instruction documented in handouts or presentations.

While searching for debt help, make sure the credit counseling is provided free of cost and there is no pressure to join any of their extended programs. Several scammed companies claim to eliminate your debt completely or improve your credit score remarkably, do not get carried away by such advertisements. If a fee is associated with the service, pay only after the goal is achieved. Non profit organizations need not be free of cost or perfectly legitimate, so a careful search is strongly recommended.

Credit counseling agencies offer debt management programs that can you get back on track. They exist to help people when they are at their most desperate in their financial situations. Their purpose is to negotiate with your credit card companies to get a lower interest rate on your credit cards. This will ultimately allow you to pay a lesser amount each month and can help you get back on your feet. They can also negotiate options where late payment fees and over-limit fees are wiped off your record. This last item usually happens after you have been making consistent payments for 6 months or more.

To have a successful experience with a debt management program, you need to have enough income to pay your bills and not miss a payment to the credit counseling service. This is another form of debt consolidation as it consolidates all your credit cards into one payment which is then paid to the credit agency helping you, who in turn makes your payments to your outstanding credit card companies.

If you make it through the program successfully, you will find that all of your debt is paid off and your creditors will appreciate the fact that you have paid off your accounts. You will be required to close your credit card accounts; however, this may be a wise decision. After a period of time has passed, you will be able to get a new credit card – just remember the warnings.

If you have ever made late payments or had over-limit fees, your credit card companies have probably raised your interest rate as high as they are allowed to. They now consider you to be a credit risk. This means that your rates could be as high as 28-32%. If you are in a debt management program, you will be able to have those high rates lowered substantially – probably in the 6-8% category. This is a reasonable expectation when working with a debt management program.

Be advised that it can take a long time to pay off all your debt through a debt management program. There are faster options, such as bankruptcy or debt negotiation, but joining a program can be more emotionally heartening and you will get the results you seek.

Another important factor in using a debt management program is the effect it will have on your credit report. It will show as a negative mark and will stay there for up to 10 years. As you start making steady payments, you will be slowly rebuilding your credit and your score will start to rise. This, however, takes time.

A final note, make sure before joining any type of program, that it offers the services you need.

Learning how to consolidate credit card debt is one of the best things cardholders can do. Consolidation is perfect for those who are looking to better their credit for the future. There are many advantages for cardholders that take advantage of credit card debt consolidation. If you are thinking about consolidation, then there are a few things you should consider before doing so. Use these tips as a guide while you consolidate your debt.

Why Consolidate?

There are several great reasons to consolidate credit card debt. One of the best reasons is to get better rates. If you can get a better rate on a consolidation than you currently have, then there is no reason not to consolidate. Consolidating credit card debt can add up to substantial savings.

Look up all of your interest rates from each card and write them on a list. Then note the new rate you would be given. If the new rate is lower than the average of the old rate, then to consolidating your credit card debts would make financial sense for you. If there are cards that have a lower rate, then you don’t have to include them in your consolidation.

Another reason people love to consolidate credit card debt is to make their lives simple. By paying one bill, they can cut out a lot of stress and bill paying time. You should probably not consolidate your debt for this reason alone however. You don’t want to pay more in the long run just to cut out a few pieces of mail monthly. Consolidation also gives those in a credit card mess a chance to get out of it. By consolidating, they may be making lower monthly payments than they would be if they did nothing. By closing out the other accounts, their credit may also be improved.

Who To Turn To?

When considering credit card debt consolidation, you should turn to professionals for a consultation. There are many credit card companies and banks that would like to help you with your request. Make sure you do your research so that when you consolidate credit card debt, you are certain you are making a decision that is profitable to you. Make sure there are no hidden fees that come with different consolidation plans. Doing your research can help you save money for the future.

Making The Choice

If you want to consolidate credit card debt, you should first look at all of your debt in detail. Once you know what you have, it will be easier to contact professionals to help you with your consolidation. Don’t be afraid to tell them you are shopping for the best deal. You should do yourself the honor of getting the best deal out there to making your consolidation as worthwhile as possible.