Credit card debt consolidation options

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Credit card debt consolidation options

Credit card debt consolidation options

Add to Favorites:

Using credit cards require strict financial discipline and timely bill management. Failure of this will lead to accumulation of debts because of the high interest rates that the credit card unions charge. There are many ways in which a credit card debt can be managed, and credit history can gradually be improved. Credit card debt consolidation is one of the most common ways of dealing with a credit card debt.

Credit card consolidation is not the same as debt management. Debt management involves companies that help people manage debt and charge a fee for their services. It mostly involves negotiations with the credit card companies to reduce the outstanding balance which can then be paid off in full or installments. Debt consolidation on the other hand involves clearing off all the outstanding balances of multiple credit cards by consolidating all the balances into one account. This can be done in two different ways:

Credit accounts:

Debt consolidation can be done easily by opening a new credit card, and paying off all the outstanding balances of other cards. This works just like balance transfers, but does not necessarily involve zero percent interest rates. But managing debts and paying back becomes easy since there will be a fixed monthly installment that should be paid to the new credit card. Also, the interest rate will be fixed, until the new credit card is used on any new purchase. It is important to avoid using this card for new purchases since the rules change completely for a new purchase. Any payments made towards the credit card will be used to cover the consolidated outstanding balance, so the chances of accumulating higher debts are more.

Obtaining Loans:

The other way of getting on with debt consolidation is to obtain a loan from money lenders, and pay off the outstanding balances. This requires some ground work before choosing money lenders, because the interest rates are very different and depends upon individual money lenders. With some research, loans with lowest possible interest rates can be obtained, and easily paid back in monthly installments. One advantage of obtaining loans from external sources is that the credit checks are not mandatory and so interest rates do not depend on credit scores. Using a loan broker to find loans with best interest rates can work out economical, but finding brokers who charge a reasonable fee for their services is requires some effort.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

How to Subdue Wedding Expenses and Earn up to $1,000 for Honeymoon

Posted: June 21, 2017

Whether you are married or not, we all agree that marriage is incredibly important for a person. It signifies the beginning of two people as a team, as a family, of a long commitment. It is a newly born union and the sign of your choice, ... Continue reading
How To Choose The Best Credit Card For Everyday Spending

How To Choose The Best Credit Card For Everyday Spending

Posted: June 21, 2017

When you reach for your wallet to pay for groceries, gas, dinner out, or any other everyday purchase, are you searching for cash, a debit card, or a credit card? Many people hesitate to charge this type of everyday spending to a credit ... Continue reading
How to Save Money. Best Credit Card Deals and Tips.

How to Save Money. Best Credit Card Deals and Tips.

Posted: June 20, 2017

We all've been through or may find ourselves in such an emergency when money is needed immediately. Lucky you are if you have savings for unexpected expenses. If not, it's never too late to start saving money. There are different ways to ... Continue reading