subject: All You Need To Know About Credit Card Debt [print this page] In this rough economy it is hard to keep yourself out of debt, especially when you have to use credit cards to cover surprise expenses. You can end up owing several thousand dollars in a few short months, whether you have been laid off or been the victim of an unfortunate calamity, without any way of getting out of it on your own. When this happens it is important to seek debt counseling in order to keep yourself from paying two to four times as much as you owe.
The number of companies that claim to be able to help consolidate your debt are on the rise, almost as fast as the number of people who are falling behind on their payments. Many of these companies will claim to take care of your credit card debt, house loans, or car payments so that they can get your business. The truth is that most of these companies are merely combining all of your debt under one lender in order to achieve a set interest rate. This can be quite beneficial for you, if you are careful, because it can make it easier for you to track how much money you owe, while providing you with a way to lower your interest rates. In order to take advantage of this, however, you need to keep in mind that these companies are still businesses and their end goal is to make money off your debt.
Most companies will do this by having you pay them directly, transferring your money on to the lender in exchange for a 10 to 15% cut of each payment. Others will have you pay them a fee up front and will then try to take your debt to a lender who will scoff at your credit, in order to take your money without having to commit to anything. You will need to do a lot of research in order to avoid situations where a large company will take advantage of you.
This means looking at several competitors, getting free consultations and quotes where possible, in order to gain a good grasp of what is actually happening to your debt. Once you have found a company to handle your credit card debt you need to make sure that you remain in control of the situation. The more you allow them to handle without your input the more likely they are to make the decision that works best for them, and not for you.
