Credit Card Consolidation

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If you have debt from more than one credit card account (or other unsecured debt loans), you receive a separate statement from each account every month. Each account will have a separate payment due with a specific due date, interest rate, fees and other terms.

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As you accumulate more and more of these accounts, the process of staying abreast of all the payments, due dates and periodic changes to the terms can become a tedious and time-consuming endeavor.

What may have begun as a mere convenience has at some point turned into a task requiring good organization and budgeting skills in order to avoid late payments and to minimize associated account fees. If this describes your situation, then consolidating your debt by enrolling in a credit card consolidation program may be the way to go.
 

Benefits of Credit Card Consolidation

1. It can greatly simplify the management of your credit card payments by consolidating them into a single monthly payment.
2. Your payment on these debts can be reduced.
3. There are several credit card consolidation services, each of which is tailored to a specific financial situation.
4. There are different types of debt solution companies that can help you achieve credit card consolidation.

How to Achieve Credit Card Consolidation

1. I have equity in my home and I can qualify for a refinance.
   Do a cash-out refinance and use the money to pay off all your unsecured credit card debt. You can probably take advantage of a lower interest rate and you will have only a single monthly payment. In addition, the mortgage interest may be deductible on your income taxes. This approach of tapping into your home equity line of credit, however, has become increasingly difficult.
2. I’m overwhelmed by my bills but I don’t want to declare bankruptcy.
   You can achieve credit card consolidation through a debt settlement program, which will offer you the convenience of a single monthly bill and the benefits of settling the accounts at a negotiated amount. However you do need to keep in mind that debt settlement is a negotiated process with your lenders. Because of this negotiated process, it is impossible for anyone to guarantee any specific settlement results. Sometimes the negotiations can go badly, and the possible negative consequences in these cases are judgments, wage garnishments and sending the accounts to collection. And even when the process goes smoothly, credit damage is a necessary result of the process involved.
3. If I could just get a little bit of help, I could get myself out of debt before too long.
   Credit card consolidation through a debt management plan will also simplify your payment, get you interest rate relief and protect your credit rating.

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