Eliminating Credit Card Debt is Possible If You Get Help Right Away
Eliminating Credit Card Debt is Possible If You Get Help Right Away
Debt consolidation is often misused by many people thinking that it is the best option when it comes to getting out of credit card debt. Credit consolidation has a simple principle and that is to add up all the liabilities into a single entity. This means that you will have to pay just one monthly due instead of many.
Interest rates can sky-rocket when people opt for debt consolidation. Usually, a person may be required to take a loan to pay off other unsecured loans. This can mean additional or bigger loan amount that may require additional collateral. This collateral can be in a form of mortgage or home equity loan and this will not be much good in eliminating credit card debt.
Taking a loan is not that bad especially when the need arises. However, it is a good practice to compare interest rates. Rates may vary depending on the amount of loan so comparing the rate difference between a large and small loan is necessary. A few dollars of difference can also be a huge amount due to the different interest rate tiers.
Loans should not always be considered as bad but credit consolidation may at times be not the best option. Taking up a larger loan in time of economic crisis is such a bad idea. There are other options better than debt consolidation. Debt settlement can be such a great option depending your financial situation to eliminate credit card debt.
Debt settlement works better than debt consolidation in a way that debts are reduced up to a certain percentage. This is advantageous to debtors as well as creditors. Debt settlement agents can negotiate to reduce the amount of the actual debt. A 50% reduction can be obtained depending on how good the debt settlement firm is when it comes to negotiating and this can help you to erase credit card debt for good.
Who needs another loan to pay off other loans when you can cut off a certain percentage of your debt? This debt settlement is far better option than debt consolidation in a way that both creditor and debtor are put in a win-win situation. The problem is debt so why add another debt when you can reduce it. Click here to eliminate credit card debt for good.