利用者:WyantLuu805
Credit card debt is not any fun, and the more you will find the worse it is. One method a lot of people turn to is consolidation. This is where you combine all of your debts right into a single debt, with a single payment. This single payment can be significantly lower than the total amount you had been previously paying. However, credit card consolidation is not right for everyone, there are some things you should know. With that in mind here are some tips to help you consolidate more effectively.
Tip #1: Read any terms of service carefully, and be sure that you simply understand them. This tip applies to those who will consolidate on their own through moving higher interest balances to a single card or two with lower interest rates.
You need to know if there are any fees for balance transfers, how long the low rate will last, what amount of the transferred balance falls under the low rate, and so forth. Many of these things may have a major effect on how much you pay, and the goal would be to pay less, not more.
Tip #2: Check into any credit counseling agency or debt consolidation reduction company you are considering using. In a perfect world you'd be able to trust all firms that offer such services, but the the truth is that a number of them are only after your hard earned money, and does not do anything but help make your credit situation worse.
These kinds of companies advertise heavily on tv, radio and the internet, but that does not automatically mean you can rely on them. Search for unbiased debt settlement reviews and check with the Bbb to see if you will find any consumer complaints.
Tip #3: After you have consolidated all of your credit cards, do not use them. Remember, you'll be reducing your overall expense, which can provide you with the illusion of having more money to invest. But that's not the case. You have to stop adding to your financial troubles, and do anything you can to repay your consolidated card.
If you discover you're in a true emergency situation after you've started credit card consolidation, then (and only then) charge that emergency expense to the card that's carrying the balance of the items your debt. You shouldn't start charging around the cards which have a new zero balance, because it is only going to result in trouble.
Tip #4: Regardless of what company you decide to go with, and whether you're doing so yourself or not, you need to read all of the the agreement. This can't be overstressed. Don't go by what somebody lets you know in person. What counts is what the paper you're signing says. In legal matters, a written contract holds excess fat than the usual verbal one.
The other reason terms are so important is they enables you to calculate just how much you'll have to pay. This is actually the best way you can accurately compare which credit card consolidation offers are the best one for you as well as your situation.