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April 2, 2012

Three Methods to Consolidate Credit Card Debt

Are you looking for ways in which you can consolidate your credit cards? There are different methods to go about getting all of your credit card debts rolled into one monthly payment and each way works a little differently and is right for some people. You’ll want to know your complete financial situation and the various ways in which you can consolidate credit cards before you choose the method that is most appropriate for you. Once you choose a method, you’ll need to stick with it in order to be successful. Some may argue that these methods don’t work, but that’s most likely because the people gave up before they saw success. It’s the same idea as losing weight; as long as you faithfully cut back on your calories and exercise more, you’ll lose weight no matter which diet or exercise routine you do.

One of the easiest, yet more risky, ways to consolidate debt it to use balance transfer credit cards. Many credit card companies offer anywhere from three to eighteen months of 0% interest on balance transfers, so you could take out a card with a 12 month 0% interest rate on balance transfers, move your old debt to the new card. Instead of paying hundreds in interest, all of your payments would go directly to the balance and you’d pay it off much sooner. The risky part of this method comes into play if you can’t get the debt paid off before your interest free grace period ends. Also, you may have more debt than credit limit, in which case you’d have to do this in phases, using a different card each time. It takes some planning, but the rewards are great!

Another way to consolidate debt it to take out a personal loan or, if you are a homeowner, take out a line of credit on your home. These ways carry some risk if you aren’t sure you’ll be able to make the payments because your car, home or other valuable belongings are being held on the line and would be taken from you if you default on your loan. Additionally, if your credit score isn’t good, you’ll pay a higher interest rate.

A third option is to choose credit counseling services which offer guidance by trained professionals. They’ll walk you through the process and help you with getting lower pay offs or interest rates from collectors, manage all of the payments. You simply need to work with them to give them all of your credit card debt information and then send them a monthly payment. They will do the rest of the work for you. To get on with the process of consolidating your cards, head over to consolidatecreditcardebt.net now and start saving hundreds, if not thousands, of dollars in interest. Don’t put it off until tomorrow or next week, do it now so that you can be living a debt free life even sooner than you ever dreamed possible!

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December 30, 2011

Why You Should Cancel Your credit Cards

Statistics provided by the US Census Bureau show that the number of credit cards owned by American consumers is increasing. Many people have credit cards as an emergency backup resource when they need extra funds. However, with high credit card fees and interest rates, your credit card debt can get out of control. Instead of dealing with the stress of your increasing debt, consider canceling your credit cards for the following reasons:

Eliminate your debt: Not owning a credit card means you don’t have unnecessary debt. If you max out one credit card and decide to pay off your debt with another credit card, you’re still left with credit card debt. This vicious cycle can escalate and leave you in a financial mess.

Maintain your budget: Staying within your budget is easier when you use cash for your purchases. Physically seeing the money you have makes you more reluctant to frivolously spend it. Handing over a credit card each time you make a purchase doesn’t make you realize how much you’re spending altogether. The shock sets in once you get your credit card statement. If you want to use a card to make your purchases and stay within your budget, use a prepaid card. Store-bought prepaid cards only allow you to spend the amount of money you put on them. When you run out of funds on your prepaid card you can replenish it as your budget allows.

Protect yourself: Each time you hand over your credit card to make a purchase you give others access to your credit card information. Whether you purchase items online or in a store, you subject yourself to identity theft. When you use cash there’s no need to disclose personal information. Identity theft can create a financial nightmare that leaves you with debt that can take years to clear up.

Avoid temptation: Credit card companies often offer tempting bonuses to attract consumers. Frequent flyer miles and points you can accrue when you use your card are not worth the hassle of paying back the money owed. Annual fees and interest rates quickly add up and add to your financial stress. Avoid using your card or acquiring one just to gain points or bonuses.

Save up: Instead of keeping an emergency credit card on hand, get rid of it. Instead, start saving up so you have at least $1000 available for emergencies.

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