Reducing your credit card debt is indeed a goal worthy of pursuit. This is especially true if you have multiple credit cards with full balances. After all, trying to catch up can be a challenge. Another worthwhile endeavor is reducing the interest fees you pay on the credit card balances.
If those aims are what you’re out to accomplish, the next item on your agenda should be to find the best means of credit card debt consolidation.
First Things First
As good as this sounds, there are several factors to consider before thinking about using consolidation services:
1. Observe your spending habits – Trace your spending and expenses, to see if you’re spending more than you’re taking in. This can help you to reduce your debt.
2. Create a budget – See how you can reduce your debt based upon how you reduce your spending.
3. Call the creditors – Contact the credit card companies to see how they can lower monthly payments, waive fees, reduce interest, or change your bill due date. This can also help in this process.
These tips can help you reduce your credit card debt without professional services. However, if you feel that these steps do not have any impact on your debt, it’s best to contact a debt consolidation service.
Choosing a Worthy Partner
There are many types of consolidation plans to reduce your credit card debt. It’s best to find a company that gives you solutions tailored to your needs, like the best credit card debt consolidation options at freedomdebtrelief.com.
Here are five of the most effective strategies.
1. Take out a loan – A number of companies offer personal loans to consolidate your credit card debt. With this option, explore the interest rates on the loan. The idea is to get the lowest possible interest rates with the loan when compared to the current rates of paying your credit cards individually.
2. Transfer debt to another credit card – You could get a better interest rate when you transfer your total credit card debt to one card.
3. Consolidation through home equity – You can take out a loan against your home, if your home value is higher than your mortgage balance.
4. Explore a debt management plan – Contact a credit counseling agency to have them create a debt management plan (DMP) to suit your needs. The credit counseling professional works with your card issuer to secure a reduction in interest rates on multiple high-interest cards. They also negotiate with your card companies to secure a reasonable monthly payment. — one you can comfortably afford each month. You’ll then deposit the funds into an account each month from which the counselor will pay your creditors.
5. Work with a debt negotiation company–These firms can be the best when you want to settle with your creditors altogether. They work with the debt collectors to clear the debt for an amount less than you owe.
Creditors are often amenable to this approach because it usually mans your next visit will be to a n attorney to draft a filing for bankruptcy protection. They know the likelihood of getting anything at al is greatly reduced in that event, so they’re often willing to settle for less than you owe.
There are some major reasons to explore the best means of credit card debt consolidation. One reason is reducing your stress by having someone work with the debt companies. A second reason is paying multiple cards on time and avoiding late payments. The third reason is getting back on your feet financially, by reducing interest rates, late fees, and increasing your savings as well.