Are you thinking can credit card consolidation help?
Credit cards offer convenience and comfort, but wrong and excessive use will bring the opposite.
High interests and compounded penalties for delayed payments will cause a lot of problems and ruin your finances.
Having multiple credit cards will even make matters worse.
After incurring all those unpaid balances, from your different credit cards is the only time that you will realize that handling various credit cards is one of the most difficult tasks in your life.
It will be very confusing for you to determine which credit card debt should be paid first and which ones can wait for some time.
However, postponing payments will eventually add burden to your present financial situation.
You must come up with the best solution that will not add to your current debt levels, but must eradicate it in order for you to start anew with a clean slate.
Will Credit Card Consolidation Help?
To determine whether credit card consolidation help or burden you, getting proper information and counseling should first be handled.
How would you do this?
Follow these steps and you will learn how credit card consolidation can truly help you pay your pressing credit card debts.
1. Cards Evaluation
The first step is to determine the status for each of your credit cards.
List the cards with the highest balance to the lowest.
On another column beside that list, write down the credit card with the highest interest to the lowest.
The purpose of this step is to find a way to lessen either the interest or the balance for each card in order to come up with the least amount for every card before consolidation.
Negotiate with the credit card issuers for a lower interest or to consider the principal amount and waive penalties and other charges.
After negotiating, determine the new balance for each credit card and get the total amount for all.
2. Creation of Budget
In this step, you will create a budget to determine your monthly income and expenses.
In the budget, exclude payments for credit card debts.
After you are able to make the list, determine how much the available amount is left to you that you can use to pay off card debts.
If you have enough to pay based on the total amount after negotiations, you can very well pay off your debts.
However, if you do not have money left, you can work on your budget by minimizing not so important expenses such as eating out, shopping, vacation, or entertainment.
If you are able to raise the amount for monthly payments, you are good.
If in case, after the budget adjustments you are not able to raise the needed funds to pay off debts monthly, then you may consider credit card consolidation help options to pay off your debts.
3. Get Debt Counseling
Before you choose which consolidation options you should use, seek first the assistance of a debt counselor.
Remember that your aim in opting for credit card consolidation help is to pay off your debts without incurring additional financial burden such as high loan interests.
There are free counseling services provided by some government and non-governmental entities that you can avail for this purpose.
4. Execution of Chosen Option
After consultation with a debt counselor, and selecting the best credit card consolidation help option for you, you are now ready to start paying off your card debts.
While you are in the process of getting rid of your credit card debts, it is best that you refrain from frequent card use that can ruin your budget.
If you opted for a consolidation loan, make sure that you are able to pay the monthly amortization.
Missing just one payment will have a great effect on your financial status.
Therefore, make sure that you meet the required payment every time.
If ever you use any of your credit cards, make sure that you are able to pay the total amount when the bill comes.
Maintain Consistency and Discipline
Your knee deep credit card debts will not vanish instantly when you use a credit card consolidation help option.
It will still take a year or five years before the consolidation option you chose to be fully implemented depending on the conditions you have agreed upon.
Therefore, make your best effort to maintain consistency in paying amortizations and credit card balances, and discipline yourself not to overspend or overuse your credit cards.