Free Credit Card Consolidation
People always want to know if there is such a thing as free credit card consolidation. This answer greatly depends on if you are approaching a solution by yourself or are using a third party. When you find ways to consolidate debt on your own, the cost is much cheaper than using a third party. Although they are easier and cheaper, many people are either intimidated or unknowledgeable about finding them.
Finding Your Own Solution
There is a way in which you can tackle credit card consolidation on your own. It requires a little time on your part, but it usually doesn’t cost a thing. Peruse all of your credit cards. Write down the balances and interest rates for each card. Put them in order according to their interest rates, from highest to lowest. Depending on the balances, you have the option of transferring the balances of the credit cards with the higher interest rates to the credit card with the lower interest rate.
Once you have made the balance transfers, it is up to you to make sure that you commit to making regular monthly payments. Missed payments will change the terms of the transfer agreement and you will probably pay more interest in the long run on a much larger balance.
Quite naturally your monthly credit card payment on the card with all of the newly transferred balances will be much higher. However, you should not have any payments for the credit cards that have had their balances transferred. Instead of having 5 or 6 credit cards with individual monthly payments you should now have only one monthly credit card payment.
Hopefully, this one payment is much lower than the total of the 5 or 6 monthly payments that you were previously paying. Don’t worry if you aren’t able to make the transfers all at one time. You will still be able to relax a little bit better knowing that you have a plan in the works that will help with credit card consolidation. Your debt is decreasing and you didn’t have to pay anyone to do it.
Using a Third Party Company
Most companies that are in the business of reducing debt are not doing it for free. They will charge a fee for their business services. Unfortunately, many of these companies are also scam operations. You must be able to research companies and determine if they will really do a good job with consolidating your credit cards. Check their credentials and do not be fooled by the companies that claim to be nonprofit organizations. Remember, most of these companies are in business to make money. If you decide to trust such a company for credit card consolidation, make sure that you have done the proper company research and get everything in writing before you proceed.
Credit card debt can quickly accumulate into a situation that is very stressful for the debtor. If you find yourself in this situation, don’t pay more money in order to get out of debt. Research ways in which you can initiate the credit card consolidation process without paying out of pocket.
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