Having multiple credit cards brings more problems than benefits to a person’s life. Keeping track of multiple repayments, varying interest rates can be too overwhelming and if not managed properly can lead to late payment penalties. Procrastination on repaying the debts can lead to accumulations of high interest credit card balances, that threaten to throw a person into credit card debt and under serious default it can lead to bankruptcies. Credit card debt consolidation helps such people, but an individual is not qualified and experienced to get the best consolidation deal. Here’s when the credit card debt consolidation agencies come into the picture. They can do a lot for such debt ridden people. In this article we take a look at what benefits a Credit Card Debt Consolidation company can bring to a person who is suffering due to multiple credit card debts.

1. Single not multiple debt

Credit card debt consolidation gets rid of multiple credit card debts instantly. This brings a welcome relief to the debtor who is plagued by multiple credit card repayment dates, juggling of APRs and various penalties.

2. End of harassment

Credit card debt consolidation brings an end to the threatening calls from debt recovery agencies. All the communication is now channeled via the debt consolidation agency, which takes care of all the harassment in a more professional manner and restores peace back in your life.

3. Professional negotiations on your behalf

Credit card debt settlement agencies, have seasoned professionals with extensive experience in negotiating debts with credit card companies. This ensures that your point is put correctly before the credit card companies and a well negotiated settlement is reached.

4. Reduction in overall burden

Credit card debt settlement companies not only club all your existing debts into a single debt, but they also do it so that you are able to pay it more easily and it reduces the debt burden significantly. This involves waving of late payment fees, reducing interest, making the loan a long term loan and reducing monthly repayment amounts.

5. Saves from bankruptcy and prevents severe damage to credit report

By taking a credit card debt consolidation, you get one more chance to repay your debts. Following the debt repayment schedule diligently will keep you out of the debt trap and ensure that the damaging effects of getting bankrupt do not arrive and malign your credit report.

Engaging a professional credit card debt consolidation agency ensures that you get the best deal. Once you have repaid all your credit card debts make sure that you don’t fall into trap of multiple credit cards again.

Everyone need credit cards these days as most of the payments can easily and safely be made through credit cards. Applying for a credit card is very easy and getting the card is much easier. What is hard is paying back the loans in time. Users are generally not aware about how much they spend when they use the credit cards instead of real cash. Credit card debts is very hard to manage and very hard to payback.

Credit card debt consolidation program offered by many debt consolidation companies and even the credit card companies themselves can be very useful in solving all your credit card debts. Following this program you can avail a credit card debt consolidation loan to erase out all your pending credit card debts. Especially when you are stuck up with many credit card loans it is imperative to get in touch with credit card debt consolidation program.

Many government schemes can also offer non profit credit card debt consolidation to aid helpless people who suffer from the clutches of the credit card debt collectors, whose constant harassments can be very frustrating and depressing to the credit card owners. The credit card debt consolidation program will erase all these difficulties of the borrowers. There can be only a few options left for a credit card debt like filing bankruptcy, choosing the right payment program for debt consolidation or go for credit card debt counseling.

Filing for bankruptcy is a very hard decision to make and moreover you will be blocked from getting any more loans or debts. Rather choose to get proper consolidation help. These credit card debt consolidation programs will help you to file a feasible consolidation plan wherein the credit card debt consolidation company contacts the credit card companies for your sake and even try to get a credit card reduction on repayments. You can easily repay your credit card debts by consolidating your loans into one easily payable loan.

The credit card debt consolidation program will offer valuable help to manage your budget, and your finances every month. Moreover, the loans offered charge very low interest rates and hence, it is very easy to pay them back every month without feeling the extra pinch in your monthly pay slip. Don’t hesitate nor wait to think twice before you choose a consolidation program. Every moment counts as the debt interest rates shoot up every day. Don’t wait to consolidate act now.

Copyright (c) 2008 Billy Alvaro

Everyone today is worried about credit card debt, but in most cases, they don’t have a clue how to do anything about it. In fact, for most people once they get into debt, they don’t have a clue how to get out again. In fact, for most of the population, it’s much easier to get into debt than it is to get out of it, especially with credit cards. Out of all the debt in our society, credit card debt is the major cause of bankruptcy and debt management plans.

The Effects

How does it begin? Unfortunately banks play a large role in the high credit card debt that many consumers are carrying. With lucrative offers of low interest rates that expire after a year with no annual fees to rewards card that have everything from free flyer miles to cash bonuses, cardholders snap these cards up in a hurry in order to be able to take advantage of the many bonus offers. The bonus offers are the beginning of what will later culminate into a financial disaster. Unfortunately, many of these offers are targeted at young peoplenew high school graduates, college students, and recent college graduateswho are not yet emotionally mature enough to understand the importance of having good credit or even how to handle a credit card. With this early lack of knowledge about credit cards comes a future of financial chaos.

Sadly, many people do not realize the effects of too much credit card debt until they are in so deep that they don’t see a way out. For many, the most classic sign of having too much credit card debtonly being able to afford to make minimum paymentsdoes not stand out as a problem. It isn’t until sometime later that the real effects of excessive credit card debt begin to materializemissed payments, inability to afford even minimum payments, credit lines at or above established credit lines, and borrowing from one card to pay payments on another card. Sometimes those in serious credit card debt will apply for another credit with a higher limit and lower interest rate with the original intention to get rid of the other cards and use the new card. Some may even take out a consolidation loan, and after the balances are paid on their credit cards, they start using them again instead of getting rid of them. For some the reality does not hit home until the bill collectors are knocking on the door, the judgments are issued, and they attempt to apply for a loan only to find that their credit is so severely damaged that they can’t even borrow a few hundred dollars to buy some furniture.

The Solution

Once you have gotten into severe financial trouble with your credit cards, the next step is to devise a plan to eliminate the debt and get back on your feet. There are several plans you can utilize depending on the severity of the damage. Following are some solutions beginning with a program for the debtor who has done the least amount of damage and ending with the most severe cases.

* If you are one of the lucky ones who becomes aware of financial issues before it gets totally out of hand, it’s much easier to solve the problem. One of the easiest ways to pay your credit card debt if you are still at a reasonably manageable level is to take the credit card with the lowest balanceor highest interest rate if all the balances are close in valueand add some extra funds each month. Even if it is only $10-15, anything above the minimum payment will help the balance reduce quicker. How so if you are only paying an extra $10-15 a month? Here’s how: when you pay off that first credit card, take ALL of the money you were paying on it, and add that to the minimum payment on the second highest balance or interest rate card. In other words, if you were paying a total of $50 a month on Credit Card #1, when you pay it in full, add that same $50 to your payment on Credit Card #2. Follow this same process until all of your credit cards are paid in full and refrain from using them other than an extreme emergency (car or appliance not working, medical bill, medicine for illness), and do not under any circumstances use the one you are in the process of paying in full. If you have more than two cards, get rid of the except any used solely for business.

* Another outlet you may want to use is a consolidation loan. Of course, in most cases you will need to own real estate to obtain a consolidation loan. This will give you a longer term and lower interest rate, but you must be careful if you’re using your home as collateral. When you have paid the cards in full, cut them up or lock them away until you finish paying off the consolidation loan. Some people make the mistake of obtaining a consolidation loan, only to begin using the cards again and create the same financial situation from which they just evolved.

* Some card issuers have a program where they will lower the interest rate and payments, but if you have several cards, this program may not work well for you. If you miss one payment, the program becomes null and void, and you are right back to where you were.

* Debt consolidation involves working with a debt management company in order to develop a repayment schedule. They will work with your card issuer to obtain a lower interest rate, and sometimes eliminating the interest rate totally, to allow you to make one payment to the debt management company that will distribute the payments to your credit card companies.

For those who waited too long to do something about their situation, bankruptcy may be the only answer. That is a step you want to avoid whenever possible, so unless you have extenuating circumstances, recognize the extent of your financial situation before it’s too late to work with your creditors.

It’s no secret that credit card debt has become a major problem facing our economy today. If you’re one of the millions of consumers suffering from major credit card debt, then you’re probably desperate to get your massive bills under control.

But the options seem limited; you probably think that it’s almost impossible to make your paycheck stretch enough to get a handle on all of your debt. It can be easy to let credit card debt take over your life – don’t let it! Whether you had an accident and had to live off of your credit cards for a few months, or just weren’t smart with your debt, there are ways that you can control your debt and pay it down – without asking your boss for a 50% pay raise! Here are the best tips for credit card debt consolidation:

* Put down the credit card: It may seem like common sense, but if you’re still charging purchases, you will never escape your credit card debt. Hide your credit cards and use your debit card to make your everyday purchases – you’ll soon spend well within your budget!

* Cut down on luxuries: Do you eat out for lunch everyday? Do you absolutely have to have that four dollar latte every morning? Luxuries like these are exactly that – luxuries. When you’re trying to get rid of credit card debt, you have to give up a few unnecessary luxuries. Try bringing your own coffee to work, or make lunch at home. The peace of mind you’ll have once your debt is gone will definitely be worth it.

* Look into a balance transfer: If you’ve been carrying a hefty balance on your credit cards, you may as well be flushing fistfuls of cash down the toilet. When you carry over a balance on your card month after month, your interest rate skyrockets, which puts even more pressure on your wallet. Consider a balance transfer to a low interest rate credit card, which will help save you hundreds of dollars in interest; not to mention make it much easier to pay down your credit card debt.

A balance transfer is a viable option for many individuals, but a warning about low interest rate cards: make sure that you’re not buying into an introductory offer. It can be a real kick when your down if you see your credit card balance shoot up once the balance transfer offer period ends!

* Try consolidation loans: Many banks will offer you private debt consolidation loans to help you pay off that credit card debt. But make sure you’re not charging anything to your cards while paying off the consolidation loans, as you’ll just be digging a deeper financial hole.

* Make extra payments: Many people pay only the minimum payments on their credit cards, but this prolongs the life of your debt – not to mention the hundreds of dollars that you’re throwing away on interest alone. Pay more than the minimum payment, or if you can, make small extra payments throughout the month. You’ll see your debt shrink in no time.

Here’s another tip for making extra payments: use the money you previously spent on unnecessary luxuries towards your credit card debt. For example, if you spent four dollars a day on your large coffee for a month, that’s $120…for some people, that’s like another credit card payment! If you budget your monthly expenses based on what you need – not what you want – you’ll find the money to make those extra payments.

* Dip into your savings account: This suggestion may seem a little shocking, but if you’re drowning in credit card debt, it’s worth dipping into your savings to alleviate the debt. However, if you can possible avoid it, try not to cash out your 401(k) or any other retirement savings you may have.

* Borrow against your life insurance policy: If your life insurance has cash value, borrow against the policy. Again, this suggestion may seem a bit shocking, but you need to get rid of that credit card debt! However, make sure you pay back the loan, as any leftover debt will paid off by using part of your policy. This may seem insignificant now, but your grieving family will thank you for it.

* Get a home equity loan: If you’re a homeowner, and have accumulated equity over the years, consider a home equity loan (HEL) in the amount needed to pay off your credit card debt. Home equity loans often have lower interest rates than those of credit cards, so you’ll be trading off your debt at 18% interest rate for one at 6%. Just using this method you’ll find you have extra cash to pay your debts off.

But before you take out a home equity loan, make sure you’ve learned your lesson regarding credit card debt. Don’t take out a loan, and then continue to use your credit card to make purchases – you’ll only further bury yourself with debt.

* Talk to the credit card companies: After all, they’re human too! If it seems like you’ve tried everything to get your debt under control, with no success, try taking your case to the credit card companies. Let your creditors know your situation. Maybe you still haven’t recovered from that accident, or you had a huge unexpected purchase to make; regardless, ensure you mention the word bankruptcy in the conversation. The last thing credit card companies want to lose is their money, so they’ll often renegotiate your interest rates and debt balance in order to protect their assets.

* Go to credit counseling: Credit counselors are often a great resource for consumers looking to reduce their credit card debt, as they can help cut down your debt balance by more than half. This is often the last step taken by individuals before declaring bankruptcy, and one of the most successful.

If your stressed out and it seems like you are up to your eyeballs in debt then don’t panic, it is possible to get yourself out of debt without working 3 jobs or going bankrupt. Just follow these tips, and you’ll be debt-free in no time; but beware! Make sure you’ve learned your lesson, or else you’ll repeat the debt cycle again and again.

A personal economic stimulus package is not in the plans of our government. But you can stimulate your own economy by eliminating your credit card debt.

Everyday, we hear the news of the debated economic stimulus package. We sit back and wonder how this will directly help us. Each of us has a unique perspective on the stimulus, and we all have different needs for where, when, and how the stimulus may or may not personally help.

Previous economic stimulus packages have sent rebate checks directly to taxpayers. Most of this money paid directly to the people was simply forwarded onto creditors to pay down debt. The current stimulus plan does not contain any provisions to send money directly to the people, and the debt balance for most people continues to grow.

For a person with overwhelming debt, any stimulus received would be used to pay down that debt. Many people are finding that they can create their own personal stimulus package, without the government’s help, by completely eliminating 100% of their debts from credit cards and personal loans. They are taking responsibility for their own financial future, instead of waiting for outside help. Of course, personal responsibility is what this country was founded on.

Without debt, and without the monthly credit card payments, hundreds of dollars per month are saved on principal, interest and other fees. For some people, this can be thousands of dollars per year in savings. It could also be the difference between financial comfort and bankruptcy.

Secured debts such as mortgages and auto loans are not applicable to the elimination program. But without the credit card payments, extra money would be available to help pay for other obligations in life.

The debt elimination program may not be for everybody. It is imperative that some time be set aside to understand just how and why the debt can be wiped clean. An elimination program is not bankruptcy, consolidation, or a home refinance. Having a basic understanding of the premise of the program will also remove any fear that someone has in regards to proceeding with this debt relief method.

A person does not need to become a lawyer to understand this process. You just need to be open to some unfamiliar information. This is time well spent considering the thousands of dollars of debt that can be eliminated. There is also no cost to obtain this understanding. This may be “hard-to-find” information, but it’s not top-secret. You will not obtain this knowledge from our main information sources, such as television, newspapers, co-workers, and our parents.

Assuming control of your debt will initiate your own personal economic stimulus plan. And you don’t need an act of congress to accomplish it. A little knowledge can set you free.