By financen | November 17, 2008 - 5:07 pm - Posted in Credit Card, Debt consolidation

If you are being overwhelmed by your existing debts, you may consider the option of combining all your existing debts under one payment plan in the credit card debt consolidation. You should consider taking this step before your existing financial problems continues to leave a negative mark on your credit ratings.

Credit card
has its own set of advantages and disadvantages. While it has made the purchase of goods and services much easier and you don’t have to carry too much cash in your wallet, it also creates an unhealthy and tempting spending habit. When you make a purchase on your credit card, you are well aware that you will pay back the amount in your next billing cycle. Often most people don’t do a proper budgeting of their finance and continue to purchase things that are not very urgent. They end up doing purchases more than their income and increase their debt to income ratio. So the credit card debt simply piles on and on.  Most of the people are not able to pay the full outstanding balance within the due dates. As a result, the credit card company charges interests and fees each month and the outstanding balance keeps moving up. If you are just paying a little more than the minimum, a lot of money is eaten up in interests and fees alone. A situation may come that a substantial amount of your monthly income is going towards the credit card debts. It is time to be proactive and opt for a credit card debt consolidation program.

Credit card debt consolidation will combine multiple credit card accounts under one payment plan. You don’t have to worry about remember the different payment dates of your credit card bills. Your debt consolidation company will negotiate with your creditors to reduce the interest rates and waive off the fees added on the outstanding balance. They will explain that you are no more able to afford the existing interest rates and fees and it may happen that your accounts will turn delinquent, if it’s not happened till now. Your credit card company will offer you reduced interest rates after some serious negotiations done with your debt consolidation company. The monthly payment plan will be set to something that you can afford and you won’t have to face the irritating reminder calls, collection agencies etc. just stick to the monthly payment plan set with your debt consolidation company and they will disburse the payments to your creditors. They will send you monthly statements of how your money is applied towards different creditors in the program.

This entry was posted on Monday, November 17th, 2008 at 5:07 pm and is filed under Credit Card, Debt consolidation. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.


  1. November 19, 2008 @ 5:27 am

    One of the best things to do is to look for credit cards with 0% balance transfer rates and take advantage of that time to pay off as much as possible.

    This way your payments will be fully coming off the balance of the card and not going towards the interest as well.

    Posted by Christie
  2. November 29, 2008 @ 7:46 pm

    Caution must be taken when deaking with a credit consolidation company. Most companies charge very high fee’s that are taken out of your monthly payment and only a portion of your payment goes toward your creditors. Many people end up filing chapter 7 or chapter 13 bankruptcy even after hiring a credit consolidation company.

    Posted by 1Clickbankruptcy