credit card consolidation

Credit card consolidation – How can you achieve on your own

Guest Post by Steven Robart

The amount of debt that you incur on your credit cards is directly proportional to the usage of your credit cards. Thus if you use your credit cards for every purchase and every transaction that you make, it is likely that the amount of your debt keeps increasing. In order to get out of such debts you can use credit card consolidation. This process includes merging your multiple credit card debts together so that the process of paying back your debts becomes easier. Also this method helps you to reduce the interest rate on your debts so that you can get out of debts by making lower monthly payments. Here are two methods how you can consolidate your credit card debts on your own.

•Transfer your balances – Balance transfer method is a way in which you can get rid of your credit card debts on your own. In this process you can transfer the debts of all high interest cards into a single low interest one. As a result of this, you can now make payments on just one card in order to get out of debt. Along with this you can pay low interest rate even on all the high interest cards, that is, the interest on the card to which all the balances have been transferred. There are also balance transfer cards available which have no interest rate or very low such as 1% or 2% interest rate to which you can transfer your balances and pay them back. However, you should be careful to pay these back fast as the low interest offer is only for an introductory period.

•Take a consolidation loan – A debt consolidation loan is best taken against your property. However you can use any of your other assets as collateral to take a debt consolidation loan. This means that if you fail to pay back the loan, your property or your assets would be seized in order to pay back for the loan. This security makes such debt consolidation loans have a lower rate as compared to ordinary unsecured loans. Thus you can use the consolidation loan to pay back all your credit card debts and then with off that single loan over time.

Hence you can see how the above two methods of debt consolidation can help you out of your debts without seeking any professional help