debt 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

debt consolidation

Is debt consolidation right for me?

If you’ve got several unsecured debts to several creditors, and you’d like the chance to make them easier to manage and/or lower your monthly expenditure, you may find a debt consolidation loan useful.

You can use a debt consolidation loan to repay all your existing unsecured debts – leaving you with just one debt to repay… to just one creditor.

You may wish to arrange to repay your loan over a longer period of time – which will reduce the amount you are spending each month (and hopefully lower your payments to a level you know you can comfortably afford).

Of course, a debt consolidation loan will only be right for you if you can afford to repay it (just like any other loan).
Let’s take a quick look at the benefits and drawbacks of a debt consolidation loan, so you can figure out whether one may be right for you.

Benefits

1. If you arrange to repay your loan over a longer timeframe, you’ll pay less on a month-by-month basis.
2. Consolidating your debts could help you avoid damaging your credit rating. This is because you’ll only have one payment to make each month, so your finances should be easier to manage and you’ll find it easier to make sure you leave enough money aside each month to cover your payment.
3. You could lower the interest rate you’re paying – if you’re consolidating debts with high interest rates, and your debt consolidation loan’s rate is lower than these.

Drawbacks

1. The amount of debt you are carrying won’t actually be reduced by a debt consolidation loan – you’ll owe just as much as you did before, although it should be a little easier to manage.
2. If you arrange to repay yur loan over a longer timeframe, you could pay more in interest (in the long run) than if you’d repaid your debts in a shorter timeframe. This is, of course, unless the interest rate on your consolidation loan is significantly lower.
3. Making smaller repayments each month will mean you could be in debt for a longer period of time.

Posted By: Mlava

debt consolidation

Alabama Agency Delays Meeting, Citing Progress On Debt – Wall Street Journal

The Birmingham News – al.com (blog) Alabama Agency Delays Meeting, Citing Progress On Debt Wall Street Journal A negotiated sewer debt settlement could affect the amount of the sewer rate increase, however. Joy Patterson, a spokeswoman for the attorney general, declined to comment, as did Justin Perras, a spokesman from JP Morgan, the county's largest sewer … Alabama Governor Robert Bentley pledges to help Jefferson County avoid bankruptcy al.com (blog) all 42 news articles