Here are some great tips on charge card consolidation to help you manage your debts more efficiently
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1) Draw up a financial budget. Yes I know it is boring but you won't ever be in a position to get out of debt until you know exactly how much you earn and what you spend your money on. As a way to get an honest picture you should keep a spending agenda for a month. Write down every cent that you spend. This is the only way you will be in a position to find those holes in your spending that need to be plugged. It will also highlight areas that you may cut back on in order to release money to pay towards reducing your debts.
2) You need to make a list of all of your creditors stating their name, your bank account number, the total amount you owe, the minimum monthly payment and the monthly interest you currently pay.
3) Now you have your financial budget and the list of your debts, you can see how much extra a month you can afford to start paying to eliminate your debt. While you are completing this exercise you ought to keep your minimum monthly payments going.
4) If your accounts are current and you have a superb record with these charge card businesses, ring them up and ask them if they can do you a special deal on the monthly interest you are paying. You may well be pleasantly amazed when they say yes. The lower the monthly interest, the more of your money will go to reducing your debts. They might call for you to move your other debts to their card in return for a great deal. This may be the best way to accomplish charge card consolidation but don't jump into anything just yet.
Ask them to affirmed the deal in writing ensuring that they confirm the amount paid and the percentage minimum monthly payment you may be expected to make. You can then review these offers and pick the best one for you. Don't always go for the lowest monthly interest. 0% over 6 months is great but 2% over 24 months is better if your financial budget has indicated this is how long it will require to clear your debts.
5) If your present creditors won't help, don't be lured to take away a loan secured on your property to repay these debts. This is probably one of the last solutions you want to do as efficiently you are giving your creditors more protective cover and yourself less. The best bet before you enter into any form of consolidation is to chat with a qualified advisor first. Don't pay for this advice as tons of charities will provide it for free. Remember you are on a mission to cut your spending in order to get out of debt.
I hope that these 5 tips on credit card consolidation will help you to repay your debts faster.