December 06, 2001
By: Bev Dodd
Credit card debt consolidation: Bankruptcy not an option
Before you reach the last resort of bankruptcy, consider a credit card debt consolidation. It may help to consolidate credit card loans that have overwhelmed you into one monthly payment with a lower interest rate. We'll discuss credit card debt consolidation more below.
What is credit card debt consolidation? Negotiation... You negotiate with all of your creditors to obtain the lowest monthly obligation needed to satisfy all of your current accounts. Then a credit card debt consolidation loan will allow you to manage your bills without declaring bankruptcy! If you are having trouble meeting the minimum monthly payments on your bills you better act soon because bankruptcy could be right around the corner. Some options include credit card balance transfers, personal loans and home equity loans. Switching to a lower interest rate could be a good solution. Keep in mind that there's no such thing as a fixed-rate credit card. Credit card companies only have to give 15 days notice before they raise rates.
If your 23% high interest rate credit card debt and other monthly bills are mounting, your balance never seems to go down. You'll be in this same discouraging position 5 or 10 years from now. You'll never break free. This is because paying 23% APR combined with only making the minimum payment is what prevents your balance from being paid off. Your strategy in is to reduce your APR by using a credit card debt consolidation, or remove it completely, and pay down your debt easily so you can be free once more. One thing is for sure, nothing will happen by just you thinking about it, you must act to take control of your finances.
People sometimes experience financial crises; others simply fail to take control of their income and spending behavior. Either way, the problem seldom fixes itself, but with careful planning and a credit card debt consolidation, you can manage a difficult financial situation.
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