subject: Five Hot Tips On Credit Card Consolidation [print this page] Here are some good tips on charge card consolidation to help you manage your finances more effectively.
1) Draw up a available funds. Yes I comprehend it is boring but you won't ever be able to get out of debt until you know precisely how much you earn and what you spend your money on. In order to get an honest picture you ought to keep a spending agenda for a month. Write down every cent that you spend. This is the only way you will be in a position to find those holes in your spending that need to be plugged. It will also highlight areas that you could reduce in order to release money to pay towards reducing the money you owe.
2) You ought to make an index of all of your creditors stating their name, your bank account number, the total amount you owe, the least monthly repayment and the monthly interest you currently pay.
3) Now you have your available funds and the list of the money you owe, you can see how much extra a month you can afford to start paying to eliminate your debt. While you are completing this exercise you ought to keep your minimum installment going.
4) If your accounts are up-to-date and you have a fantastic record with these charge card companies, ring them up and ask them if they are able to do you a special deal on the monthly interest you are paying. You could be pleasantly surprised when they say yes. The lower the interest, the more of your money will go to reducing your financial situation. They might expect you to move your other debts to their card in return for a good deal. This may be the foremost way to accomplish charge card consolidation but don't start anything just yet.
Ask them to confirm the trade in writing ensuring that they confirm the costs and the percentage minimum monthly payment you will be expected to make. You may then review these offers and pick the best one for you. Don't always opt for the lowest monthly interest. 0% over 6 months is great but 2% over 24 months is better if your financial budget has indicated this is how long it will require to clear your finances.
5) If your current creditors won't help, don't be tempted to take out a loan secured on your property to repay these debts. This is one of the last solutions you want to do as effectively you are giving your creditors more protective cover and yourself less. The best bet before you enter into any form of consolidation is to talk to a qualified advisor first. Don't pay for this advice as plenty of charities will provide it for free. Remember you are on a mission to cut your spending as a way to get out of debt.
I trust that these 5 tips on charge card consolidation will help you to repay your finances faster.
