When you’re behind with your credit card payments for whatever reason, it’s extremely important to consider all the various credit card debt consolidation methods, and determine which one is specifically best for your situation.
Using some of these methods can help you reduce your debt considerably, or at least make it more manageable. Also, they can assist in getting creditors and debt collection agencies off your back, so you and your family can stay stress-free.
One of the best rated credit card debt consolidation solutions is debt settlement. Through this option, a debt consolidation company is contacted that can negotiate the principal balance on your debt. Read more about debt settlement here – http://www.toptenreviews.com/money/debt/best-debt-consolidation-companies/.
Often involving complex negotiations, this method can be quite fruitful, allowing debtors to reduce the amount they need to pay off by more than 40%. The downside is you can sometimes expect a slight reduction in credit scores, however, it still remains one of the fastest, cheapest and most convenient debt consolidation methods out there.
Debt Consolidation Loans
Consolidation loans can also be used. While they are an option that can be advantageous for any type of debt situation, including bills and other loans, it can also work wonders on reducing your credit card debt, and you can apply for consolidation loans regardless of your credit history.
The interest rate, however, is critical, and you need to research loans that come with lower interest than what you currently have to pay. A common solution for facilitating this is to secure your loan with some type of collateral, such as a vehicle or a home.
Credit card debt consolidation through credit counseling mainly involves the negotiation of interest rates on your credit card payments. Credit counseling plans are usually in effect in 4-5 years, and they can significantly help you reduce your monthly payments, as more money goes to covering the principal balance.
Credit Card Balance Transfers
Finally, balance transfers are quite a convenient option for people with more than one credit card. In essence, they allow you to transfer all your credit card balances to a separate, single credit card with a lower interest rate.
It is, of course, very important to do your best to research credit card transfer options involving plans for minimal payments, or even zero interest credit cards before transferring your balance.
There are many advantages to each of these methods, but only you can determine which one is best for you. Consider seeking counseling from one of the most respected companies dealing with credit card debt consolidation, so you can make a more informed choice about your financial future.