Debt Consolidation

How to Consolidate Credit Card Debt

credit cardCredit card debt is no joke. Neither areĀ bad credit loans. But, there is no point in beating yourself up. Sometimes we just have situations that are a bit out of our control. Even when you are responsible enough to have a credit card for emergencies you may not have enough money to pay for the debt the emergency incurred. The positive news is there are ways out of it if you are systematic in your processes.

The Process

Check your credit score before anything else. Make sure you know where you stand in your score. Make sure you contact the companies that you are in active collections with. If you can afford even one payoff then see if you can settle with them and clear that debt.

If you have a lot of debt but still have good credit it may be a prudent move to get a credit card with low interest and pay it down on that. Do some research online or find out if your bank has a credit card for that too.

If you belong to a bank or better-yet, a Credit Union; you could apply for a personal loan through them. First; however, do the research and find out what the requirements are for the loan first. You may have to have a certain credit score or a certain standing with the bank etc. to qualify. Credit Unions are better and simpler to deal with in most cases. Having a solid plan to present to them is also a prudent move. There are no guarantees but you can rest assured that it’s better than walking in with nothing.

debt management

Get a debt management plan. A debt management plan is one where a company will take control of your debt and work with the debtors that you have the debt with for certain amount or percentage. You will pay the debt management company a certain lump sum which they will disperse to the debtors on your behalf. Several things can happen with this choice. First, the debtor may not accept the plan. Second, the debtor may or may not lower the interest on the debt owed to them. Three, they may offer a settlement amount.

Whatever you decide to do, make sure you do it as soon as possible. It is only to your benefit that you act as soon as possible so that you don’t allow your debt to fester.