Credit Card Debt Consolidation

By November 16, 2008Debt Consolidation

What about credit card debt consolidation?

Over the last two decades we’ve become used to using our credit cards for anything from regular household expenses to emergencies to treats. The problems arise when we have to repay credit card debts. Getting into the habit of only paying off the interest on your credit cards each month can quickly lead you into real financial trouble. And the interest rates on credit cards can be crippling.

If, like many people, you have several credit cards, things can soon get out of control. It doesn’t take long to get into serious debt. Credit card debt consolidation is one way to get out of trouble fast.

•    When you consolidate credit card debt, you take out a single large loan which you use to pay off all your credit card debts in one go. This leaves you with just one monthly repayment, to one creditor.

•    Better still, most credit card consolidation products include a choice of repayment terms. So you can choose to repay your new loan over six months, a year, two years, five years etcetera. Doing so reduces your monthly repayments to a level you can afford.

Find the right credit card debt consolidation loan

There are literally hundreds of card debt consolidation products on the market. So it is a good idea to spend the time finding a consolidation loan that meets all your needs. Interest rates vary and different loan companies offer different deals.

The easiest way to do this is to use a price comparison website, which will compare the market for you in seconds. Otherwise, it could take days to winkle out the best deal!

MoneySuperMarket.com
TotalMoney.com
BeatThatQuote.co.uk
MoneyExtra.com
MoneyExpert.com

Before you consolidate credit card debt…

If you already owe money left, right and centre, credit card arrears can tip the balance.  Many people find that credit card consolidation helps them get back on their feet and avert a real crisis.
But before you sign up for credit card debt consolidation, think about switching all your credit card balances to one interest free credit card. You might find that switching to an interest free credit card – for as much as a year – gives you the breathing space you need to break free from credit card debt.

ThinkMonkey.com – Great article on credit card debt consolidation.

 

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