Of all the different pieces of financial jargon that get banded about in relation to credit card users one can be forgiven for feeling a little bit lost or confused but there is one term you need to fully understand as it will be of great benefit should you encounter any debt issues. That term is credit card consolidation. By using credit card consolidation you could save your-self a whole pile of money, whether you are in a spot of financial trouble or not.
Primarily, a consolidation should be used to help people who are having financial difficulties but how do you know if you are in trouble or not? It is quite often the case that debt issues are caused by ignorance, people tend to ignore potential problems in the hope that they will improve and eventually go away; in reality, however, they often grow to a size that becomes unmanageable and as a result the debt will cause unnecessary stress and worry.
Admitting that you have a debt problem can be difficult, embarrassing and shameful but refusing to accept it will only ever have an adverse effect pushing you further into trouble.
Use this checklist if you need help to highlight whether or not you have a problem with credit debt:
- Are you only paying the minimum payments required by your credit cards?
- Do you find yourself juggling payments by using one card to pay another?
- Are you using your cards to buy things because you do not have the cash to do so?
- Has paying with your card replaced what you would previously pay for with cash: groceries for example?
- Have calls from your card providers become more frequent making you reluctant to answer the phone or open up your mailings?
- Are you embarrassed to tell people about the size of your debt?
- Are you constantly looking for credit increases because your cards are all maxed out?
If you can relate to any of the list above then, in all probability, you have a serious debt issue and should seriously consider debt consolidation as an option.
There are two forms of credit card consolidation, the first is balance transfer consolidation which is where you move all your card debt onto one or two lower interest cards, therefore reducing the amount you pay in interest or there is the credit card consolidation loan which is what we will cover here as it provides the best solution to credit card debt.
When you consolidate your debt you will basically be getting a loan from a bank or a similar financial institution to pay off all of your other debts. Although we are primarily talking about credit card consolidation, these loans can be used to pay off your Quick Quid card loans, mortgages, and or student loans. They can all be put together into one single which will have several advantages.
With all your debt consolidated into one manageable loan you will be paying a great deal less in interest payments especially on your credit card debt, where constantly soaring interest rates and penalty charges, not to mention annual fees can be outrageously high.
Another advantage as mentioned previously is the improved manageability of your finances, it doesn’t take a rocket scientist to work out that one loan is a lot easier to control than say twenty different loans and credit card accounts! No more missed or late payments due to oversights!
Give plenty of thought to performing credit card consolidation, never jump into the first deal you are offered and always shop around for the best offers. It may be wise to consider using a credit counseling service for some expert advice and guidance especially if you lack any experience in these matters.