Getting Out Of Financial Suicide With Charge Card Consolidation
Credit card consolidation is a smart thing to do. One should not have too many credit cards, anyway. But if you can consolidate them all so that you have one bill, you are on your way to financial freedom.
Many people find that they are strapped by credit card debt without even knowing it at first. They have a need, but no money, so if the need is important enough, they spend on the card. It is too easy. And at first it seems harmless. And it is.
But the next week, they have another need. It may not be as dire. But the card is available, and you deserve it, and the justification is worked out in your mind. And you spend on the card again.
Now the ten dollar item that was dire to you has ballooned to over a hundred dollars. It is for items that you did not have the cash for, and you should not have purchased them. But you felt you needed to at the time, and that is fine. And now you have to pay it back. With most people living paycheck to paycheck, and not accounting for one single extra bill, this gets more difficult as the interest piles on.
Suppose this is not the only credit card in your wallet? It is easy to get in trouble with all of them at once. Necessities happen. Cars need work, teeth need work, and you had forgotten all about mom’s birthday. So, now, how do you pay it back?
Debt consolidation companies can help. Some do not charge at all, because this would be just another bill to add to the trouble. They will combine all of your debt from credit cards into one monthly payment. They will stretch the amount of time you have to pay it, and it will be affordable for you to do it. They are the ones that will speak to anyone they need to at the credit companies about consolidation of your debt.
The next step is to cancel your cards. Maybe you can keep one or two, but cancel and cut up the rest. It is the only way to get your debt back under control.
Another credit card consolidation strategy would be to apply for one credit card with a much lower interest rate. Assuming that your credit is still in good standing, you should be able to do this and transfer your debts over to this new card. This solution is not for everyone, so you will have to weigh your options. And you will still need to cancel and destroy your other credit cards. Having more that two credit cards can be trouble for anyone. If the temptation is limited, this is better for you. You should probably keep one credit card for items that you will pay off monthly. And keep a tally of everything you spend on it. This way it should not get out of hand. And the other credit card should be used for emergencies only. It would be used for things like car troubles, and a refrigerator that needs to be replaced, and other emergencies that cannot be avoided. Then you will need to put money aside for this debt, as well. And if you can possibly pay more than the minimum payment on your card, this is always a smart move.
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