subject: Credit Card Debt Consolidation - How Credit Card Debt Can Be Consolidated [print this page] Credit Card Debt Consolidation - How Credit Card Debt Can Be Consolidated
Credit card debts become a pain for all if you are carrying too many cards. Keeping track of all the payment dates it is a tough task and to make matters worse the interest rates are abnormally high. Every time you miss out on a deadline a hefty late charge along with the interest rate is added on to your account.
A lot of people having such problems are finding respite through debt consolidation. This is a debt consolidation method which is mainly helpful for people having multiple cards. In this method a debtor can take out one loan in order to pay off his various credit card loans. The new loan taken out is generally with a lower rate of interest or even a fixed rate of interest. Some of the debt consolidators even discount on the total amount of the loan. However, this is not very common.
There are no fixed eligibility criteria for debt consolidation. Every debt consolidator has his own specification. Generally, a debt consolidator looks into the customer's credit rating, Checks if he has a permanent job and many ask if the customer owns a house. This is because they would then take the house as collateral for the loan.
Generally it is more advisable to get an unsecured loan where a debtor does not have to keep a security deposit or collateral. To get this kind of loan you might have to visit quite a few debt consolidators but it will be worth the effort.
On the negative side of this method a lot of people would say that the total duration of the loan is so long that the customer ends up paying much more than he had bargained for.
This method itself does not have a negative impact on the credit rating.
Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.
