Free Credit Card Debt Consolidation

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Tuesday, June 30th, 2009 Subscribe To Our Feed

We are thinking about money differently than we used to. Free Credit card debt consolidation and dealing strictly in cash are two of the new the most common changes that people are making. If you are looking for a completely free method of repaying your debt, you are going to have to do it on your own.

A debt consolidation loan will require you to pay closing costs, but you may be able to have them added to your loan. Many people go further in debt when they used debt to payoff debt. You must use your home as collateral for most debt consolidation loans. You must understand that defauling on the loan could cause foreclosure proceedings on your home. If you look at the recent economy, taking out a home equity loan a few years ago may have put you upside down in your home loan. This is not a good place to find yourself.

A debt settlement company will charge you based on the amount of money they are able to save you on your credit card balance. The fee usually ranges from 15%-25%. So, if they save you $2,000, you will be paying from $300-$500 for this service with a net savings of $1,500-$1,700. But, here comes the downside. You will have to pay taxes on that same amount and this transaction will not be reported favorably on your credit.

Credit counseling service is another option you have and for most people that want help managing their debt this alternative is best. You wiil see an interest rate reduction that will be under 10%. Any interest rate reduction will save you time and money. Get onto any credit debt calculator and you will be amazed at what an interest rate reduction can save you. The price range for this service is $30-$50 monthly. One of the big advantages is making only monthly payment to make all of your credit card payments.

Although these are not free credit card debt consolidation options, they are going to cost you less than what you are paying now. Some debt relief methods are better than others and not all will work for all situations. It will depend on your personal debt situation which debt relief solution will work best for you.

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