Top 5 Tips For Credit Card Debt Consolidation

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Thursday, September 2nd, 2010 Subscribe To Our Feed

Here are some good tips on credit card consolidation to help you manage your debts more effectively.

1) Draw up a financial allowance. Yes I understand it is boring but you won’t ever be in a position to get out of debt until you know exactly how much you earn and what you spend your money on. As a way to get a real picture you should keep a spending agenda for a month. Write down every cent that you spend. This is the only way you will be able to find those holes in your spending that must be plugged. It will also highlight areas that you might cut back on as a way to release money to pay towards reducing your finances.

2) You should make a listing of all of your creditors stating their name, your bank account number, the whole amount you owe, the minimum monthly instalment and the monthly interest you currently pay.

3) Now it’s time your financial budget and the checklist of your debts, you can see how much extra a month you can afford to start paying to get rid of your debt. While you are completing this exercise you ought to keep your least payments going.

4) If your accounts are up to date and you have an excellent record with these charge card companies, ring them up and ask them if they are able to do you a special deal on the interest you are paying. You could be pleasantly surprised when they say yes. The low the interest, the more money will go to reducing the money you owe. They might expect you to move your other debts to their card in return for a a lot. This may be the best way to achieve credit card consolidation but don’t start anything just yet.

Ask them to support to the trade in writing ensuring that they confirm the amount paid and the percentage minimum monthly payment you will be expected to make. You may then review these offers and pick the best one for you. Don’t always go for the lowest monthly interest. 0% over 6 months is great but 2% over 24 months is better if your financial budget has indicated this is how long it will require to clear your finances.

5) If your present creditors won’t help, don’t be tempted to withdraw a loan secured on your property to repay these debts. This is one of the last solutions you want to do as effectively you are giving your creditors more protective cover and yourself less. The best bet before you enter into any form of consolidation is to chat with a qualified advisor first. Don’t pay for this advice as heaps of charities will provide it for free. Remember you are on a mission to cut your spending as a way to get out of debt.

I hope that these 5 tips on credit card consolidation will assist you to repay the money you owe faster.

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