101 Powerful Tips for Legally Improving Your Credit Score

by Jill H West on Wednesday, August 24th, 2011 | No Comments

Consolidation Credit

how to consolidate credit card debt
consolidation credit

– Credit card debt consolidation program
Credit card consolidation or credit card bill consolidation helps you to avoid paying high interest on your credit card bills. So, if you’d like to obtain lower rates on your cards, get credit card debt help from a consolidation company. The company communicates with your creditors or collection agency (CA) so that they agree to reduce your interest rates and offer you an affordable monthly payment plan.

The steps in a credit card consolidation program are almost similar to that of a debt consolidation program. Just check out the steps and make sure you’re well aware of how the program works before you enroll in it.

1.You can pay off credit card bills at low rates of interest.
2.Multiple bills are consolidated into a single manageable payment.
3.Creditors or CA can reduce/waive off late fee and over-the-limit charges.
4.Creditor/collection agencies will stop making harassing calls.

When you’re in a credit card consolidation program, you don’t have to worry about dealing with several creditors. Just keep on making monthly payments to your consolidation company. The company manages all communication with creditors/CA on your behalf and disburses your monthly payment to the creditors till you’ve paid all your dues.

– Consolidate credit cards on your own
If you’re interested in free credit card consolidation, you may consolidate bills on your own. This can be done by transferring balances from your high interest cards to the one having the lowest interest rate. Now, make a single monthly payment towards this card. This is how you consolidate multiple bills into one affordable payment. Thus, you don’t need to worry about managing too many payments at a time.

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While you transfer the balance, don’t just close your credit cards all at once as it may affect your credit score. You should also check out for any balance transfer fees that the credit card company may charge you. However, make sure you don’t run into additional debt by using the cards again.

For further information on how to eliminate or reduce credit card debt on your own, you may refer to the do it yourself section.

– Take out a debt consolidation loan
You may take out a debt consolidation loan in order to pay off the outstanding balances and eliminate credit card debt. It is similar to a personal loan with longer term and is available at a comparatively low rate of interest.

The monthly payment on the loan will be low but the total interest you pay over the term of the loan may be quite large. In case your credit score isn’t good enough, you may not be able to qualify for a consolidation loan. Moreover, it’s better to avoid bad credit debt consolidation loans as they’ll require you to pay higher interest.

Here are the 3 tips you need to follow when you’re in a consolidation or credit card debt elimination program.

The key to any financial problem is overspending and not keeping a track of exactly where you’re spending the money. So, it’s essential to plan your budget first. Use a budget worksheet to calculate your monthly income and expenses. The consultant at the consolidation company may guide you on how to budget your income and expenses. This will help you avoid a default while you’re in a credit card debt elimination program.

Emergencies are common to all. There can be health problems or natural disasters for which you may be unprepared. This is when an emergency fund helps you. While you budget your expenses every month, just keep aside a part of your income (5-10% if possible) for emergencies.

When you’re in a credit consolidation program, make sure you don’t use your credit cards any more. You may not close the accounts right away; just set the cards aside for the time being. Make sure you’re able to keep up with the payments so as to get out of debt within a short time frame.
Alternatives to credit card consolidation
Apart from credit card debt consolidation, there are 2 other solutions to credit card debt. These include:

This is a credit card debt reduction program suitable for those who have excessive credit card debt and wish to reduce their outstanding balance. Here, a credit card debt relief company works with your creditors or collection agency so as to reduce your debt by 40-60% of the balance.

Credit card debt management starts off with a free credit counseling session wherein a certified counselor assesses your financial situation. The counselor also negotiates with your creditors so as to reduce your rates and make your payments affordable.

A credit card consolidation program is no doubt the best way to consolidate credit card debts. But you can benefit from it only when you have the planning and determination to make it work for you.

What’s your Credit Score? Find out FREE!

Consumer Credit Counseling provides FREE CREDIT COUNSELING to the public worldwide and FREE CREDIT REPORTS. Ask your credit question and get an expert answer 24 hours a day for help with debt consolidation, credit repair, unemployment and debts, debt settlement, wage garnishment, and court judgments. http://www.consumercounseling.org

consolidation credit question by Logans Mommy 12/15/09: Has anyone had a good or bad experience with “consolidate credit” please let me know!?
Has anyone experienced good consolidation with “consolidate credit” . . please share!
They are saying that they are non profit.. would it be a lie?

consolidation credit best answer:

Answer by Gaytheist Buddha
Most debt consolidation companies do not help borrowers.

Instead, look for a credit counselor who belongs to the non-profit National Foundation for Credit Counseling or http://www.nfcc.org.