Consumer Credit Consolidation - Is it Right For You?
Chances are that you or someone that you know has had financial difficulties recently. In this economy, and in light of the poor job market, more and more people are turning to
consumer credit consolidation [http://christiandebtconsolidationservices.com/] as an alternative to bankruptcy.
If you have credit card debt piling up it might be worthwhile for you to consider consulting a consumer credit consolidation counselor. A credit counselor will contact your lenders on your behalf and attempt to negotiate lower interest rates and eliminate late fees. The counselor may also try to consolidate your credit card debt into one monthly payment. The idea is that you can now simply make one payment to the service each month and it will take care of paying your individual creditors.
You will want to be careful not to take out an additional loan when you get involved in this program. You are simply looking for a debt consolidation not a home equity loan which could cost you your home if you are unable to make the repayment.
If you are offered a consolidation plan don't commit to a monthly payment that you can't afford; this is why consumer credit consolidation doesn't work for some people. You simply have to be realistic about what you can afford. If the counselor insists that you pay an amount that you know you can't handle, ask about the possibility of paying a lower amount for a year. This might be especially beneficial for someone who has lost his job but feels that he will be working again soon.
Next, it would be wise to stop using any credit cards that you have remaining and not accept offers for new credit cards, as tempting as they might be. If you are having financial problems it is not the time to start rebuilding your credit-you should only worry about keeping your financial head above water. If you still have credit cards don't close the accounts, as this could be bad for your credit, but cut up the cards or, try this trick, freeze them - literally. Put your cards into a bowl of water and stick the bowl in the freezer. Now, before you use a card, you'll have to let your card thaw out and this gives you time to decide whether you really need an additional expense to repay.
Consumer credit consolidation has been helpful for many people and it can be a lifesaver for those who use it properly. The key to it is taking the opportunity to get your finances back on track and never to allow yourself to get into this situation again
consumer credit consolidation [http://christiandebtconsolidationservices.com/] as an alternative to bankruptcy.
If you have credit card debt piling up it might be worthwhile for you to consider consulting a consumer credit consolidation counselor. A credit counselor will contact your lenders on your behalf and attempt to negotiate lower interest rates and eliminate late fees. The counselor may also try to consolidate your credit card debt into one monthly payment. The idea is that you can now simply make one payment to the service each month and it will take care of paying your individual creditors.
You will want to be careful not to take out an additional loan when you get involved in this program. You are simply looking for a debt consolidation not a home equity loan which could cost you your home if you are unable to make the repayment.
If you are offered a consolidation plan don't commit to a monthly payment that you can't afford; this is why consumer credit consolidation doesn't work for some people. You simply have to be realistic about what you can afford. If the counselor insists that you pay an amount that you know you can't handle, ask about the possibility of paying a lower amount for a year. This might be especially beneficial for someone who has lost his job but feels that he will be working again soon.
Next, it would be wise to stop using any credit cards that you have remaining and not accept offers for new credit cards, as tempting as they might be. If you are having financial problems it is not the time to start rebuilding your credit-you should only worry about keeping your financial head above water. If you still have credit cards don't close the accounts, as this could be bad for your credit, but cut up the cards or, try this trick, freeze them - literally. Put your cards into a bowl of water and stick the bowl in the freezer. Now, before you use a card, you'll have to let your card thaw out and this gives you time to decide whether you really need an additional expense to repay.
Consumer credit consolidation has been helpful for many people and it can be a lifesaver for those who use it properly. The key to it is taking the opportunity to get your finances back on track and never to allow yourself to get into this situation again
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