In this article I’ll tell you about Credit Card Debt Consolidation. Credit card debts are a serious concern these days. According to statistics the average household in the United States has credit card debts of over 10,000 dollars. And most of them are not able to pay 5% of the actual debt.
Filing a bankruptcy would not solve the problem anymore because there are a lot of hassles involved in the process, as per the US legislation process. Therefore experts suggest that the best way out is to opt for a credit card debt consolidation. This way you can not only negotiate with the credit card company and repay all the loans in a much more organized manner, but will also have a control over your finance.
There are a number of simple yet strategic ways by which you can consolidate your credit card debt. Let us study a few essential ways.
Use the credit card to the minimum
Either you use the credit card to purchase the minimum number of goods or better if you refrain from using your credit card completely till the time you pay most of your debt. This is because the more you use the card; the debt amount will go in increasing.
Use a credit card debt calculator
This will help you in calculating the debt amount on your credit card and how much you should pay up to the credit card company. You should get an estimate of the amount you are expected to repay each month. You can also find out which companies offer credit cards with high outstanding balances.
Go for a good negotiation
One of the most effective ways is to negotiate a good deal with the creditor. This often depends on factors such as a good credit history and your present balance, among others. You can perhaps tell your creditor that you are getting more lucrative offers from other banks and so on. You can also request them to reduce your annual percentage rate (APR), so that you can clear your debts easily. If you do not have a good credit history, you can always approach a credit card debt consolidation loan firm. They can often help you get a better deal.
Pay more amount
To get out of the debt situation as early as possible, pay a little more than the minimum amount during the debt consolidation period. By paying a decent amount every month, you can clear the debts in no time. Ask your credit card agency as how they can help you with debt consolidation. You can always ask for a 0% balance transfer or a lower-rate credit card to improve the debt situation.
Seek professional advice
As part of your credit card debt consolidation program, it is important to consult an attorney or a credit counselor to come out of the situation as fast as possible. He would be the right person in terms of offering good advice that can get you the best deal.
A good negotiation skill coupled with a strong determination will help you in credit card debt consolidation and help you clear your debts on time.