A credit card is a life support system for a shopaholic! Everyone is now taking advantage of credit card these days. It is made of plastic and has magnetic stripe. The purpose is to facilitate its customers by lending money to them when they are out of cash for their expenditures on the behalf of promise of future payments. Whether it’s shopping or for some emergency purpose, customers can always take advantage of this plastic money. It has simplified the transactions in every walk of life. As the name implies, the banks and private organizations give credit to customers.
Credit Card! A Big Responsibility
Where credit card is helping people in many ways on the other hand credit card debt payments is a big responsibility for everyone. Credit card has surely made our life much easy as we just need to show the card to the intended person and we are done with our work.
Credit Card Debt Consolidation
If credit cards are used properly and the customer is making his/her payments on time, they certainly get free credit for fixed period as well but if they don’t, then there will be definitely credit card debts to the credit card holder person which can be annoying and irritating experience. The only way to get rid of it is to consolidate your debts to reduce the amount of all credit card debts by making one single monthly payment.
Following are some ways to consolidate your debts:
1. Get A Home Equity Loan
It is an efficient way of consolidating your debt. If you do not have enough cash but you have your own home, you can take a Home Equity Loan (HEL). The interest rate on this is lower than your credit card rate but higher than your first mortgage loan. Do not transfer all your unsecured debts to a secured loan when you cannot pay the monthly payments of your debts to avoid serious financial trouble.
2. Refinance Credit Card
You can refinance your credit card debt by paying off credit card by borrowing from the other lender. It has no similarity with debt negotiation. The new lender will only give you money when he has the surety of getting back the amount.
3. Go for a Balance Transfer
When a debtor is in deep trouble and is looking forward for 0% interest rate on credit card, he/she can select any financial institution who does not charge interest rate on transfer of credit cards in their introductory period. Try to transfer your high interest balance in that period.
Prevention is better than cure! Consolidate your account to avoid serious financial issues.
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Posted by ryna in Credit Card Debt · 1 Comment
That’s right! I was shocked when they asked me to essentially cosign for my business. I am hoping to not need credit too often, but I still may work on building it up with some of the tips in this article. All I have now are 2 business credit cards.