Consolidate Credit Card Debt: A Practical Guide to Getting Started

Author: James Martinez

Author: James Martinez

Credit card consolidation seems to be a mystery to many people who have thought about consolidating their credit card debt. Many questions are pondered, "How do I qualify?" "How will it affect my credit score?" "How long will it take? As well as many, many more questions. Before you step out and decide that you want to consolidate your credit card debt, take a look at this practical guide to getting started on the path of credit card consolidation. How Much Debt are you in and how high is Your APR? To start, if you owe less than $10,000 in credit card debt then it's just a matter of having better discipline over your spending habits and getting a budget in place. If you have more than $10,000 in credit card debt then you could be eligible for consolidation. Your APR could also be increasing your payments especially now that credit card companies are scrounging to find ways to increase their bottom lines, and that means impacting yours. When you consolidate credit card debt, what you're really doing is finding another means by which you can pay off your debt, which typically involves some sort of loan at a lower interest rate. What Happens to My Credit Score? When you consolidate your credit card debt through a debt management company or credit counseling service, these companies work with your creditors to negotiate lower payments, and in some cases, the creditors could waive your late fees or fees from exceeding your credit limit. Please note that some creditors will ask that you close down your accounts and, depending on which accounts you close down, it could impact your credit score. In the end, the most sure fire way of damaging you credit score is to fall behind on your payments and falling into a far worse situation than the one you were in. Understand Why You Need to Consolidate Debt and Set Goals If you know exactly why you need to consolidate your credit card debt, you will be much less likely to spend the money you'll be saving. Begin by setting up short term and long term goals and how you'll be more responsible for your credit. For example, one short term goal is that you need a new computer for your home and you don't (and shouldn't) take out line of credit to pay for it. An example of a long term goal is to perhaps buy your first house or to update an existing area of your current house. Yes, you could take out a home loan on your mortgage, but you'll just be even deeper in debt. Another purposeful long term goal is to put your kids through college. When you create goals for saving money, you'll be much more apt to stick to them. If you have found that you don't qualify for debt consolidation, there are other debt relief services available to you. For instance debt settlement works especially well for people who are overwhelmed by debt, have fallen behind on their payments and have no collateral that can be used for a loan. If you're practical about why you need to consolidate your credit card debt, you'll find it much easier to move forward in that endeavor.About the Author:

Author's Note: The information above is simply advice based upon experience. If you would like to find out more about credit card consolidation and receive a free consultation with a debt specialist, this site is a valuable source: CreditCardConsolidation.com

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