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Credit Card Applications » News » Other » Debt Consolidation - A Potent Solution to Credit Card Debt

Debt Consolidation - A Potent Solution to Credit Card Debt

January 03, 2010 | Updated on January 03, 2010
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The content is accurate at the time of publication and is subject to change.

For a lot of people, paying off credit card debt is not simply a process that demands discipline, control, and strong will. When settling credit card debt, it is vital for one to establish a consistent routine of paying dues on time.

Failure to pay dues promptly will result to higher interest rates and companies would start to demand that you finish off the contract earlier. It is very a demanding cycle and a lot of people find themselves struggling to catch up.

One good way to get you out of this messy situation is to design a consolidation debt plan. Debt consolidation makes it easier and more convenient to settle bills because a debtor deals with just a single lender which bills him a consolidated amount each time. Without such a program in place, a debtor has to deal with a number of lenders each time, making the payment process more tedious.

The formula of consolidating debt may sound too simplistic and insignificant to generate positive results, but it has been proven to inspire debtors to undertake more affirmative action.

It is important for a debtor to start a consolidation scheme as soon as he can to prevent more grave scenarios in the future. If you own a home, you can apply for a consolidation loan using your home as equity.

Moreover, if you plan to make lump sum payments, it would not be wise to settle your outstanding balance in full. Take advantage of the situation by asking lenders for discounts and waivers using your lump sum payment as leverage.

Normally in this situation, credit cards would be more than happy to give in to such requests in exchange for a full payment.

Also, find the best deal and choose a consolidation loan that has low interest which would generate huge savings for you. An ideal situation would be to get a loan that charges interest rate lower than your credit card debt, which would create a scenario where the excess amount that you are able to save off of the consolidation loan would go towards the principal of your debt. In this manner, you will be able to settle your credit bills faster.

In order for you to get the best rates, it would be helpful to consult with a debt relief network that has ties with reputable debt settlement companies. Normally, only those debt settlement companies that have integrity and possess a good track record in helping people get out of debt are recognized by debt relief networks. Another thing that's good with debt relief networks is that they offer their services free of charge.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
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.
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