Credit Card Debt Consolidation Help and Information

A helping hand: Credit Card Debt Consolidation Help and Information



If you need credit card debt consolidation help, the chances are you have run up balances on one or more high-interest credit cards, and are now struggling to make your payments.

Credit cards are an expensive form of borrowing. Once your balances exceed a critical point, making the minimum monthly payments will seem to take forever to pay down the balance.

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Back to talking about credit card debt consolidation. If you're paying less than the interest charges on your accounts, then the amount you owe actually increases each month. This means you will never repay the debt and owe more and more in interest to the financial institution which advanced you the cash.

If you're in this position, you have to address situation and the sooner the better.

Your Financial Health Check-Up

Financial health, like your personal health, is not going to improve by ignoring a problem.

Your debt can be like cancer. Ignoring the notices from your lenders, or blindly paying the monthly minimums and letting the interest build up, won't cure the problem.

Consolidation of your credit card debt is one potential option, but first, you need to give yourself a check-up.

There's only one person you can't hide your problem from: that is the person you see in the mirror. Be honest with yourself and educate yourself about your debt position. It's the first step to curing your credit card debt problems.

Credit Card Debt Consolidation 101: Get Organized

Okay, it's time to work on your credit card debt. Be sure you have an hour or two when you can be uninterrupted to focus on this important step.

Begin by obtaining all your latest statements. Spread them out on the table in front of you and take a clean, fresh legal pad or other notebook. Be sure to write the following information down.

Make a note of:

  • the name of each card
  • the current balance owed
  • the APR (annual interest rate)
  • the minimum payment required without falling into more debt
  • the interest charged last month
Also make a note of the day each month when your payment is due. This will help you to plan your cash flow.

Don't despair. Even if the figures look horrible, facing the problem is the first step to improving your situation.

What's Next?

You now have crucial information and you are armed with the extent of the problem for each credit card. You know what the minimum payment you need to make on each card is, and how much more you'll need to pay above that amount to rid the actual borrowed amount.

This is a crucial point. As long as you repay more than the interest owed each month, slowly and surely, your balance will be reduced. The difference might be quite small, but don't give up. This is a process and it takes time. Let's show an example to demonstrate this.

Example 1: Increasing Debt

Balance of card: $2,000Minimum payment required: $50Interest charges: $60You pay: $50 (the minimum)

If you make the minimum required payment of $50, your debt will actually INCREASE by $10 the following month. This is not good!

Example 2: Reducing Debt

Balance of card: $2,200Minimum payment required: $70Interest charges: $65You pay: $95 ($25 more than the minimum)

By increasing your payment by just $25, you have reduced your debt. Instead of it increasing, it has actually got less.

Credit card debt consolidation means making small, steady steps towards a clearly-defined goal; debt-free living. Just as mountaineers don't leap straight to the summit and sprinters don't break world records on their first day of training, your debt problem isn't going to be solved overnight.

When you bundle your loans and use credit card debt consolidation you will need patience and discipline to pay this new loan off.

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Below are links to more detailed articles on this topic. You may also contact Debt-Consolidation-Help-101.com with questions and comments.

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