Credit Card Consolidation Company
A credit card consolidation company offers services by which a cardholder can drastically reduce monthly payments, interest rates, actual debt or all three. The term encompasses a whole range of ideas and methods that can help make these three positive things happen. Charge card debt is really kind of weird. Did you ever notice how it is getting up early in the morning about an hour and a half before having to leave for work and the coffee is brewing and the morning news is on, and it seems like only twenty minutes have passed by but the hour and a half is almost gone? Using a charge card is the same way. Just a coffee at the frou-frou joint, just a few purchases here and there, just a tank of gas, just a new suit and wham, suddenly the debt is at a thousand dollars and you're wondering where did all that come from?
It's no wonder that millions of people are head over heels in debt and that seventy percent of Americans are living paycheck to paycheck. It's absolutely tough if there isn't a whole lot of discretionary spending money to pay off all the purchases at the end of the month, but that's what everyone should do. Charge cards were just supposed to be a convenient thing to make carrying cash a little less worrisome. But just like social security, we've all gotten used to it and now who wants to live without either? But even if we don't want to live without charge cards, Americans are certainly living with real borrowed money mountains. So a credit card consolidation company is a very hot topic. But the topic involves both negative and positive action a person can take to make the credit card consolidation company thing work.
On the positive side, a person can begin with just stopping the use of the card. Pull the plastic out of the wallet, throw the thing on the ground, stomp on the thing, take a hatchet and whack the source of pain into two dozen pieces, put a blindfold on and bury the remains somewhere where you can't find it! Okay, so few people will really do that. Stop charging stuff! Pay cash for almost everything. Along with that guerilla tactic, use a credit card consolidation company plan which puts all past borrowing on new plastc with zero percent interest, even if it is only for a year. Pay double or triple payments during that time and get the mountain down as far as a person can.
A credit card consolidation company plan works best when a debtor can use good money to cover bad money. If a person has enough equity in a house, and charge debt is sinking the ship, use a home equity line of credit (HELOC) from a bank or credit union. And listen, if a person has to borrow, a home equity line of borrowing is far and away the best way to fund charge account consolidation. The interest rates are sometimes a third or a fourth of what credit card interest rates are, meaning that the pay back on this loan will be a whole lot less a month than all those high interest rate card monthly payments combined.
So if a person doesn't have a hatchet and blindfold, or if there is no equity or one lives in an apartment and no companies will give zero percent interest plastic, a credit card consolidation company may be the right choice. From online services to local offices in many towns, credit counseling services can go about crafting a credit consolidation loan of a different sort. No, you don't have to go in a lie on a sofa and tell your life story. Not that kind of counselor! In this case, this service will negotiate with all creditors, get all the accounts down to a single digit rate and cut charge account payments basically in half in most cases. Life really can throw huge stones at us and in our path, but Christians have a source of joy for God is at work. "We are troubled on every side, yet not distressed; we are perplexed but not in despair; persecuted but not forsaken; cast down but not destroyed." (II Corinthians 4:8,9)
A credit card consolidation company or counseling agency will ask a client to make one payment a month to them that will be much lower than his combined payments were. The company will receive the monthly payment, take out about ten percent for their costs and pass the rest on to the various lenders. Over a five year period, the plan calls for all credit card debts to be paid off entirely. But just stop the joy wagon for a minute pardner. Less than fifty percent of clients ever finish the program and in many cases it's less than thirty. The failure comes because undisciplined people can't handle the extra money that is generated each month by the single lower credit payment. All too often it gets spent and then even the lower payment can't be made.
Once the bills are paid off everything is okay, right? Actually there is a big catch to using a credit card consolidation company plan. A chapter thirteen bankruptcy proceeding uses the same negotiation strategy with getting interest rates lowered. This proceeding is used by those who don't want to lose most of their possessions and are willing to pay off their debts, but just over a longer period of time and at less expensive interest rates. A chapter thirteen filing has a ten year black mark on a borrowing history, and so does a counseling program where debts are lumped together. The bottom line for all this is to really consider every option like getting a second job or selling off possessions to get those debts down before making a long lasting decision. But do not despair, even with a long term black mark life goes on and can even get better!
Credit Card Consolidation LoansThe necessity for credit card consolidation loans occurs as an increase in consumer debt and increased charge accounts continue to mount. The average charge card obligation is unknown and facts are often skewed to the reality of economic hardships facing the country. What is known is that Americans face a growing debt and need to find ways to consolidate into easier and healthier payments relative to personal income. On the average, people carry 3 to 5 charge accounts. The charge accounts range from gas and store cards to other types of bank and credit cards. Many people find themselves caught in a credit card snare. Charging items whether needed or not has become a way of life. While charge accounts bring convenience, they enable bad habits such as increased spending, forgotten budgets, and other unforeseen addictive behavior. Debt from unsecured assets brings about the need for credit card consolidation loans. Some households take on extra economics burdens to try relieving the financial woes they face. However, hope and regaining financial freedom is possible.
Consumers need to begin reducing debt by concentrating on what is in their budget. Budgeting brings awareness into the household on financial matters from what is purchased compared to what is earned. Many people spend in excess over what the household can afford. Some people have invested their time and energy into self-consolidating methods through using and combing all accounts onto one lower interest rate card. A few credit card companies offer methods for consolidation but a consumer needs to be aware of and read the fine print. Often, the companies and these reduction methods create more havoc on an individuals credit rating and score. Some companies offer a no interest rate opportunity for the first year and then hit the consumer with such a large interest rate after the first year that greater damage is done. Home equity loans may be possible for households too. This finance may offer tax relief by deducting the interest rate. Of course, because of the decline in value of homes over the past few years, a persons house may not be enough collateral. While self-help methods for financial freedom is possible, credit card consolidation loans tend to be the best method to reduce the economic hardship. Once households are entrenched in bad habits, breaking free can be hard if done by self-help methods. Relief can occur easier with help, and credit card consolidation loans bring financial freedom through easier methods.
The benefits associated with consolidation are great. Credit card consolidation loans offer assistance and relief to avoid bankruptcy, stop harassment by creditors and collection agencies, reduce interest rates, and offer a reduction in debt. The savings in monthly debt reduction can be as great as 50%. A loan provides one monthly payment instead of many daunting payments. With lowered interest rates, combined obligations, and single payments, loans offer savings of hundreds of dollars in monthly payments. Since a loan consolidation pays off all cards, a person feels an immediate impact. The combination of debt positively affects the persons credit score. While an immediate impact occurs with reduced monthly payment amounts and visible positive impact on a persons financial score, a loan may not save money over time.
If credit card consolidation loans extend years of payments, an overall reduction in money saved does not occur. While consolidating causes a quick fix, payments made over many years may cause a larger payback amount. The benefit of using methods of consolidation, such as a bank or other financial agency, provides a person with guided, comfortable, and easier means for financial freedom. Still a person should use caution and be proactive in the search for the best process of financial restitution. Monetary entities provide manageable means for debt settlement and make negotiations with creditors on behalf of the consumer. The best entities to pursue for consolidating monetary obligations are those that offer lower interest rates, that vie for a persons business, and that are knowledgeable of the processes and programs available. Credit card consolidation loans must only be pursued from a company that is a known reputable company with an established face in the community. Word of mouth business is an excellent way for an individual to know whether a business can be trusted. Word of mouth helps the business and the consumer.
Before pursuing credit card consolidation loans, an individual should do a little research on what is available. When an entity offers a loan, the individual will know if the opportunity is good or avoidable. Consumers can find a massive amount of information on the Internet. An individual seeking to establish a means of economic restitution should know a few facts before agreeing and signing a new loan contract with a company. A consumer should know and pay attention to the following details pertaining to consolidation: the term rate, length of payment, pay back terms, eligibility requirements, and any other potential conditions. Many establishments offer free consultation and assist in the daunting task.
Pursuing consolidation may not be for everyone. However, by combining charge accounts, individuals may feel instant relief. Whether through self-help or consolidation process, a household can obtain and experience income stability, increase awareness of spending, and return to a life of financial freedom. Let them shout for joy, and be glad, that favour my righteous cause: yea, let them say continually, Let the Lord be magnified, which hath pleasure in the prosperity of His servant (Psalm 35:27).