Credit Card Debt Consolidation Tips

Read these 10 Credit Card Debt Consolidation Tips tips to make your life smarter, better, faster and wiser. Each tip is approved by our Editors and created by expert writers so great we call them Gurus. LifeTips is the place to go when you need to know about Debt Consolidation tips and hundreds of other topics.

Credit Card Debt Consolidation Tips has been rated 3.1 out of 5 based on 579 ratings and 1 user reviews.
What is the first step to eliminate credit card debt?

Get Free - Eliminate Credit Card Debt

Are you tired of paying so much in interest on your credit cards each month? Most of us are not able to carry ‘zero balances' and actually accrue a ton of interest every day. Then, at the end of each month, we pay only a tiny bit more than our interest alone, if any. This will never help us eliminate credit card debt. However, we all need to re-think things and start looking for any ways we can to eliminate credit card debt.

To eliminate credit card debt, you must take action. Nobody is just going to come along and offer it to you. Credit cards are a big business and your interest is just one of millions making up one of the largest industries in the world. To start taking action, check with a debt relief agency. These places are popping up in a lot of places because of the very problems I just mentioned. More people want to take action to eliminate credit card debt, so certain professionals have responded by opening these agencies.

The most important action you need to take to eliminate credit card debt is to not use your credit cards. Credit cards were not created for everyday purchases. To think of what people will use them for makes most people in previous generations laugh. Unless you stop using your cards, you will be forever going uphill in your efforts to eliminate your credit card debt. Take action! Eliminate credit card debt for yourself and get free from paying so much each month.

   
How can I go about credit card consolidation?

3 Roads to Credit Card Consolidation

There are many ways you can consolidate your credit card debt. Credit card consolidation is a very smart move for anyone who is burdened with high monthly payments and no end in sight. Here are 3 ways that you can consolidate this debt and save money each month.

  1. Consolidate to a Single Card – If you have multiple cards, you can achieve credit card consolidation by increasing a single credit line and consolidating to it. Most people choose to open a new credit card with the necessary limit and a great promotional interest rate. If you get these in the mail like most people, really read the next one. It may be something you really need.
  2. Get a Low Interest Bank Loan – Personal loans are available from many banks for cars, vacations, and credit card consolidation. The fixed rates that banks can offer are usually competitive with credit cards so a credit card consolidation loan can be a smart move. The advantage to a bank is that you will not be spending the money again each month as you do with a credit card. Meaning, you will have a light at the end of the debt tunnel.
  3. Use Your Home Equity – If you are a homeowner with credit card debt, you can use the equity from your home to consolidate your credit cards. Credit card consolidation with a home equity line of credit is great because these rates usually cannot be beat by any credit card. Even a 0% credit card will only last that way for a limited term. With a low rate equity line, your credit card consolidation will have long-term low interest.

   
Can I use home equity for credit card debt consolidation?

Using a HELOC for Credit Card Debt Consolidation

If you are a homeowner burdened with credit card debt, you may be able to relieve yourself from those monthly payments by using a HELOC (Home Equity Line of Credit) for credit card debt consolidation. Today, HELOCs have interest rates that very few credit card companies can offer. If you have established equity in your home, chances are you can make that equity work for you by using to pay off your credit card debt.

Many people think of credit card debt consolidation only as taking on a new card to consolidate others. However, credit cards are not the only money that is there for borrowing. The security of borrowing your consolidation funds from the equity in your home means that it will be paid back at some time. Even if you wait until you move or sell your home, those funds will be repaid. However, if you use a single credit card for credit card debt consolidation, you may never actually pay it off.

Talk with a mortgage broker or lending website if you have some built up home equity as well as credit card debt. Credit card debt consolidation could be the best financial move you ever make.

   
Can I go to a bank for credit card debt relief?

Using a Bank for Credit Card Debt Relief

If you are facing a bunch of credit card debt and want out, the answer may be just around the corner… literally. Many banks will be happy to loan out money for the purpose of credit card debt relief, you just need to ask. Beyond regular banks, there are new credit unions starting each day that are great for these types of loans.

  • Start by going to your regular bank, where you keep any accounts, and ask them about their personal loans. If they offer personal loans, let them know that your purpose is for credit card debt relief and if they can help. If they are able, they will provide you with several options, rates, and terms for a credit card debt relief loan.
  • If your local banks cannot accommodate you, there are more. Check with the Internet for online banking institutions that can also provide loans for credit card debt relief. The rates offered by these online lenders are often even lower than your local bank.

Wherever you find it, a bank loan for credit card debt relief is something you should look for if you are paying too much each month in credit card payments.

   
How does credit card debt affect my credit score and report?

How Credit Card Debt Affects Your Credit Report

The major credit agencies all evaluate a person's credit in roughly the same fashion. The problem is, most people are not aware of how any of them do it. If you want to know how things such as credit card debt can affect your credit report, here is a quick breakdown of that aspect, specifically.

First, credit card debt is not necessarily a bad thing on your credit report. The real question to the credit bureaus is how much credit card debt do you have compared to your available credit. Let's say you have 3 credit cards with a total of $10,000 in credit lines. Let's also figure that those three cards carry a total of $5,000 in credit card debt. You would be better off in this scenario than if you had 3 cards with a total of only $5,000 in credit lines and were maxed out at the whole $5,000.

Having available credit from your credit lines, even in the face of credit card debt, will help you keep from having your score hurt too badly. The key to keeping your credit card debt from hurting your credit report is to either pay it off, or never max your lines out.

   
Should I look into credit card consolidation?

Paying Too High Interest? Look For Credit Card Consolidation

Credit card consolidation is a pretty simple theory to understand. For people with credit card debt across multiple cards, this option is one that you should be exploring to reduce your payment burden. Credit card consolidation is also the fastest way to pay down your principal.

Here is a short example of what I mean. Let's say you have 3 credit cards. They each have about a $500 balance and carry varying interest rates between 10 and 19%. These may seem high, but credit cards have high interest. With interest rates this high, it may be difficult to pay down your balance before the interest builds up. Now, let's say you decide to go with credit card consolidation to a single 6% interest credit card. Obviously, your credit card consolidation has resulted in a single card with a $1500 balance, but with an interest rate of only 6%. This means that you can pay the same amount you are used to and more will simply be applied to your principal, instead of just paying off your interest.

The most important, last step to credit card consolidation is this – rip up your old cards once they have been consolidated. Do not let yourself get into the same situation again. Say goodbye to those high rates forever once you have completed your consolidation.

   
What are some ways to manage credit card debt?

Managing Your Credit Card Debt

If you are like a great percentage of Americans, you are probably burdened by credit card debt. Credit cards have become far more than what they were initially conceived for. Today, people will whip out their Visa or Mastercard for anything, not just those large or emergency purchases that really need it. A big reason for this is the ‘rewards' that many cards now offer. No matter how good you think you have it with your credit cards, you will be better off by properly managing your credit card debt.

One of the best ways to manage your credit card debt is to keep your eye on your interest rate. If you currently are carrying a fair amount of debt on a single or multiple credit cards with high interest rates, you may be able to consolidate them all onto a single, lower interest card. Today, you can even find zero percent interest offers from major banks and credit card companies. Personally, I am kind of tired of finding them in my mailbox. The trick with credit card debt is in the interest fees. Most people do not realize that the minimum payment on a credit card is only based on the interest accrued. Therefore, if you never make extra payments, you will never truly reduce your credit card debt.

By consolidating into a lower card, you can have lower monthly payments which will allow you to make bigger payments towards your principal balance. Managing you credit card debt can be easy or it can be hard. To be safe, do what you can to always pay off your balances and never find yourself in any serious credit card debt.

   
What are some ways to eliminate credit card debt?

3 Ways to Eliminate Credit Card Debt

  1. Make Double Payments – Once people realize that their minimum monthly payment on their credit card does not include any payment towards their principal, they see why they can never seem to eliminate their credit card debt. A good way to counter this is to make double payments each month of the minimum payment. The very least you should do to eliminate credit card debt is to pay at least as much principal as you do interest each month. A double payment will do just that for you.
  2. Consolidation – A common way to eliminate credit card debt is through consolidation. Whether you use a new credit card or another means of borrowing the finds, consolidation can help you get a better grip on all of your debt payments as one. When you have a single payment, it is not only easier to manage, but also easier to make extra payments because most consolidated credit card debt will now have a lower interest rate.
  3. Stop Using Your Cards – If you are trying each month to chip into your credit card debt but cant seem to get anywhere, I may know why. You may even be making extra payments each month and you still cant make a dent. Chances are you are still actually using the card. This is the problem. If you were able to spend more on your payments than you spend with your card than you wouldn't be in this tight spot now, right? So why are you still using the card? Cut it up and work on the cash in your pocket and bank accounts until you have fully been able to eliminate credit card debt.

   
What are the benefits of credit card debt consolidation?

Benefits of Credit Card Debt Consolidation

Statistics have recently shown that an enormous percentage of American carry multiple credit cards with large balances. The collective debt that we have gotten ourselves into has given a great power to lending institutions. Many people live under this power forever and do nothing about their debt. However, the smarter ones will take advantage of credit card debt consolidation to eventually get rid of it all.

One of the biggest benefits of credit card debt consolidation is that you can see a light at the end of the tunnel. Multiple monthly bills for multiple credit cards means that you are paying much more per month in minimum payments than you would after a consolidation. By having a single balance and monthly payment, you can allocate more funds each month to pay off your balance, and not just your interest.

Another great benefit to a credit card debt consolidation loan is that you can usually improve your interest rate. Depending on how you go about your credit card debt consolidation – whether with a loan, an equity line, or a new credit card – you will be working with more money to borrow. Whenever you want more money, lenders and banks will want your business more. This means that they can offer lower rates for higher amounts.

There are many more benefits to credit card debt consolidation. For more information, check out our sponsors and other financial websites that have great answers and options for you.

   
What is a credit card debt relief company?

Using a Credit Card Debt Relief Company

Today, debt is a growing problem in the world. Form the smallest of individuals to the largest of nations and businesses, debt rules almost everyone. That created quite a demand for a new type of industry called Credit Card Debt Relief.

Today, there are many of these credit card debt relief companies that will assist people with eliminating and even paying off their credit card debt. This type of credit card debt relief should be welcomed by anyone who is burdened with credit card debt. Finding a credit card debt relief agency is simple.

First, you can use the Internet to find websites that offer credit card debt relief. You can check out our sponsors to see the services that they can offer to you in this area. Also, you can locate local credit card debt relief companies if you feel you need a more face to face, hands on experience. However you do it, get with a credit card debt relief specialist soon if you are making never-ending monthly payments to your cards. In a matter of hours, these people may be able to save you more than you ever imagined.

   
Not finding the advice and tips you need on this Debt Consolidation Tip Site? Request a Tip Now!


Guru Spotlight
Jolyn Wells-Moran