Credit Card Debt Consolidation Explained

Credit card debt consolidation is generally a process where an individual will try to consolidate debt into just one or two cards. This process is often recommended by debt consolidation counselors as a way of managing debt issues. Unfortunately for many people, debt problems are usually ignored until it is close to being too late. This process of consolidation can be simplified and can usually be done in as little as an afternoon if given the right information. It does take a bit of work, but once it is completed it is very much worth the effort, given that it does help you figure out your debt and how to narrow it down.

It all starts with looking at the debt that you have collected on your credit cards. Credit card debt consolidation works because you are going to choose which cards have the oldest credit lines and have lower interest rates. Having both is important, and people might debate which is the better way to go if you had to choose between the two. It really depends on how much financial trouble you are in. If you can afford the higher interest payments on the two older credit cards, go with those. If you need to go with less interest, and most people choose this, then it is okay to go with the lowest card.

You can also usually negotiate with your credit card companies to get a lower interest rate. Some people might feel funny about this, and sometimes they don’t know what to expect or how to ask. It is easier than it sounds. If you have another card with lower interest, but you want to keep a different card, call the card company you want to keep the card and tell them you have another, better offer. They might lower your interest rate for you. It never hurts to try to negotiate and it can save you so much money when you try.

Once you have all these things in place, you can start moving debt from your old credit cards, and then consolidate them into the chosen card. In this way, you can pay down your old debt in one or two payments on the two cards, instead of having a mix of cards. You can also get the interest lowered, and make payments as needed. It might take several tries and several phone calls, but it can be done when you work at it.

There are many other ways to handle credit card debt consolidation. This way of selecting one or two cards and narrowing down your options can help a lot though. It is usually easy enough for someone to do on their own without assistance, as long as you can read your statements. It might take some time to get comfortable with learning how to read your financial statements, and if you do need help, it is certainly recommended that you talk to a credit card or debt counselor about your available options.

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