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subject: A Credit Card Debt Consolidation Services Is It Your Best Option For Debt Consolidation? [print this page]

Statistics show that many people who complete a credit card debt consolidation loan, end up going back into debt within a few years. Even though debt

consolidation can help you repay your debt, its up to you to remain debt-free after your debt consolidation program has ended. If you havent changed your spending habits, you could find yourself in need of debt consolidation again.

Youre advised against taking on new credit card debt while youre in a credit card debt consolidation program. You should be smart about taking on new debt after you have finished a debt consolidation program. Though many people whove gone through debt consolidation and bad credit debt consolidation services swear off debt completely, its unrealistic to expect that youll never use credit or debt again in your life. Its a better idea to use credit wisely than to think youll be able to stay away from it all together.

Start an emergency fund to avoid debt caused by financial emergencies. Actually, its a good idea to begin building an emergency fund while youre going through your unsecured loan debt consolidation program. That way, you have some savings to fall back on in case of a financial emergency. Continue to maintain your emergency fund after youve completed the credit card debt consolidation program and avoid dipping into it unless its truly an emergency.

The most important thing to remember when youre making new credit card charges and applying for loans is that you should never take on more than you can afford to repay. That means if you can only afford to pay back a $10 credit card balance at the end of the month, then you should only charge $10 on your credit card. Before you ever swipe your credit card, assess whether youll have enough money to pay back the balance. Also dont fall for ads offering credit card debt consolidation loans. They are a scam. There isnt any such thing.

Always make your payments on time. After youve built a three- to five-year positive payment history through non profit debt consolidation, you dont want to mess it up with a single late payment. Get in the habit of paying your credit card bills well before the due dates to ensure your payment is processed in a timely manner. On time payments will help you maintain your interest rate, reduce the cost of carrying credit, and improve your credit.

Focus on managing your money wisely. The smarter you are with your money, the less likely it is that youll resort to credit cards and debt to maintain your life. Good money management starts with a budget. Having a budget helps guide spending and allows you to recognize any gaps between your income and your expenses. Seeing your expenses on paper makes it easier to evaluate your expenses and reduce them if its necessary.

by: vanessa

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