Is Consolidation Credit Card Debt For You?
If you are covered in credit card debt, struggling to make monthly minimums and wondering if you will ever be debt free again, or even manage to make this month's bills then consolidation credit card debt could be for you.
Consolidation credit card debt is not the best solution for every situation, and an assessment of your options and your financial situation is imperative before you make that decision. It could be your credit card debt is simply too overwhelming for consolidation credit card debt to work for you. If the consolidated debt is still more than you can repay even with lower interest rates and no more penalties then debt settlement may well be a better option.
On the other hand, consolidation credit card debt can be the way to financial freedom again in a much shorter time than would be possible attempting to pay off the credit card debt one by one to the companies and with their high interest rates.
The question of course is will you benefit from consolidation credit card debt? If you have multiple credit cards or unsecured loans with high interest rates and if you are struggling to meet the monthly payments then it is possible to benefit and even be debt free in a relatively short time and save your credit rating in the process.
On the other hand, if you have only one credit card with a very low interest rate and you are still struggling it may be necessary to look at alternative debt solutions other than consolidation credit card debt. Since consolidation is meant to help eliminate the high interest rates charged by companies, give the consumer a single low payment each month and avoid further penalties or late fees, it works for those who need a break in interest or simply bill juggling.
For the consumer who has suffered a drop in income and cannot make even the reduced consolidation credit card debt payment then other alternatives exists such as debt settlement.
In almost every single instance though, it requires a good long look at your individual situation, no debt resolution method will work for every single consumer. Moreover, most companies will offer budget counseling to help make paying off that single debt easier and less of a struggle.
The consumer should also understand that even with a consolidation credit card debt solution, if they were struggling to make payments, then credit card use should be avoided until they are debt free. Unfortunately, it is all too easy to sign up for that 0% credit card only to find out that is a limited time offer and a few months down the road, the interest rates are crushing.
What consolidation credit card debt may do is to give you a way to save your credit, and avoid bankruptcy but only if it a considered decision and used wisely is it a good solution.
What you should be aware of is that consolidation credit card debt it is not always the only solution, or best for you and you should speak to a professional to find out.