Lower Your Credit Card Debt and Save Thousands

Credit cards might be convenient, but credit card debts are definitely not. When credit card debts get out of control, the best recourse for the debtor is to consolidate all debts and focus on managing personal finances better. Credit card debt consolidation has many benefits. The two most important advantages are that you get better rates for the entire debt, and the new loan can be structured in such a way that repayments can be made easier and less complicated. Consolidating credit card debts can help you save a lot on interests payments.

There are several ways of consolidating your credit card debt. Two most common ways to do so are through debt consolidation, and by taking a consolidated amount loan to pay off your credit card debts.

1. Debt consolidation is a method that enables you to combine all your debts into one low monthly payment, mutually agreed by you and your creditors. This fixed monthly amount for repayment is decided usually through expert debt management companies or consultants. They can negotiate with your creditors on your behalf and help you with the disbursement of money among your creditors. A proper consolidation plan can help you decrease your credit card bills by as much as 50% or more, and protect you from continuous increase in interest payments.
2. The second option is to get a loan to pay off all you credit card debts. You can either get this loan yourself or through a debt relief network. Loan counselors and debt management companies can also help you get a low interest rate loan for you. This loan is usually an affordable consolidation loan with reasonably low rates of interest compared to the credit cards, which are expensive and have very high interest rates. The loan might also free up a little cash that you can use for other pressing needs.

When you go looking out for such solutions, you will find that the market is full of debt management and consolidation schemes. You can start with a simple internet search for debt management or consolidation companies, especially those with expertise in dealing with credit card debt. But always be very careful about verifying the credentials of the companies that you shortlist. Read reviews of these companies and also investigate in to their past experience and performance.

Once you have short listed some of the reputed and experienced companies after running a proper background check, you should ask them about their services, fees and specific offers. It is advisable to avoid firms that demand high monthly payments or charge heavy fees, as it will result in you spending more than you save through a consolidation plan.

You also need to know when you want to use the services of a debt consolidation company and when you need a debt settlement company. If your account is in collections, it is advisable to contact a debt settlement company rather than a consolidation company, before the situation gets even worse. A good debt settlement company can help you settle as much as half of your debts.