Credit Card Consolidation – What Are Your Options

There are many people in today's economic times that seem to be under a constant pressure both financially and emotionally and the idea of ​​completely eliminating having to deal with the burden of credit card debt seems all too much like a far fetched idea. Know that no matter where you are at in your current financial situation there is always a way to over come it. It takes proper planning, research, and above all consistency and discipline to make it all come together.

The first step to credit card debt consolidation is to establish where you currently are in your financial situation. Go over your credit report and find any items that might have been over looked or perhaps mistaken. Do you know exactly how much you currently owe? That is a very important component of the financial relief plan. How much is your current interest rate on each of the cards.

You could consider a home equity loan or a home equity line of credit to consolidate your credit card bills into one single payment and lower interest rate. This could however be a very risky situation if you have not yet developed the financial skills and discipline to continue with the plan and put at risk losing your home.

If you feel that you are not yet at the point that you can be 100 percent responsible for your budgeting and spending habits this is not the best path. You could also consider applying for a personal loan, and in the event your credit is not within the qualifying brackets perhaps a better approach would be to discuss with someone close to you on the option of them co-signing for you.

Debt Settlement and Debt Consolidation programs

If you feel that you currently can not negotiate on your own, that you where not able to find someone to co-sign or to obtain a personal loan. And either you are not a home owner or there is currently no equity to apply for a home equity loan. If you feel like your last resort might be for filling chapter 13, know that there has been a lot of changes done to the law to make it more difficult to qualify for it. Debt settlement and debt consolidation programs are not for everybody, beware if they ask for …
-A large amount of money upfront
-If they promise they can have negative items removed from your record
-They guarantee immediate results
-They are not in good standing with the BBB

Those are all signs that you should be careful when working with them. You may seek non-profit debt counseling services to provide some insight and some solutions for you.

Source by Orlando Piedrahita

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