You suddenly find that you are spending most Saturdays arranging all your credit card bills to figure out which ones to pay and which ones are just going to have to wait another month, even if that yet yet another late fee you will also have to pay. At what point are you going to get tired of that and do something about it?
No, I am not talking about declaring bankruptcy. Hopefully things are not that bad, and even if they are, bankruptcy should be your option of last resort. Rather, I am talking about credit card consolidation. Using this type of service, you can save a ton of money in interest and also the amount of money you are putting out every month will be much less than what you are doing now, and all of your debtors will be paid each month.
Does that sound too good to be true? It is good and it is true, although many people are not aware of credit card consolidation services, sometimes also known as debt consolidation. And no, it is not yet another loan that you are going to have to pay, where you end up robbing Peter to pay Paul, which does not help your situation at all.
What happens with credit card consolidation is that you gather up all your credit card bills and account numbers and total amount due. It does not have to be just credit cards, but can also be other monthly payments that you are making, like a car loan or a personal loan. You take all this to a credit consolidation company or debt consolidation company and they talk with you about what you want to do and lay out various scenarios so they and you both understand what your goals are and how much you can comfortably afford to pay every month without sending yourself to the poorhouse.
If you decide to go with their service, they take over your credit card bills and any other bills that you are including in this consolidation. Their job is to work with your creditors to get your payments lowered, get your interest rate lowered (because it is probably astronomical), and sometimes even get late fees waived.
Your job is to pay the credit consolidation company every month without fail and then they disburse the money to your creditors so that each of them earns at least a minimum payment that month. With the lowering of interest rates and payments that they have done for you, if you were, for example, paying out $ 3500 a month before to all of your creditors, you are likely to only be paying $ 2200 a month now. Can you see what kind of financial breathing room they have given you?
It is important to note that this is not a loan. They do not pay off your creditors in most cases, so if you miss your payment to them in a given month, then NONE of your creditors will get paid in that month, and you will be even worse off than you are now.
One of the big benefits of this is your credit report. Since your payments are being made on time each month consistently (assuming your make payment to the credit consolidation service company), your credit report starts getting better because you are meeting all of your financial obligations on time. And since you did not file bankruptcy, there is not that huge red flag on your credit report which makes lenders very nervous.
Consider using a credit card consolidation service today and start enjoying more of life without the stress of all those bills hanging over your head every month. Yes you will still have the bills, but now they will be much more under control for you.