Just about everyone has credit cards today. However, a lot of people are having a hard time making the monthly balance payment. If this is a problem, if each
credit card monthly minimum is too much, perhaps you should consider a credit card debt consolidation loan. This is only one of many solutions you should consider
to reduce or eliminate your credit card debt.
The simplest method of consolidating credit card debt is to move all of your balances to the credit card with the
lowest interest rate. You may be able to take advantage of a new credit card with a low or zero introductory interest rate, and you transfer all of your credit card debt
onto that card. Of course, you have to make sure you receive a high enough credit limit from the new company to be able to transfer all of your debt to that
card.
You also have to choose the credit card that will revert to the lowest annual percentage rate after the introductory period. Better yet would be to
calculate your outstanding debt over the introductory period and pay off enough each month to be rid of the debt at the end of the introductory period. Otherwise
make sure you know that the interest rate will start to apply after the introductory period. This may be necessary, but if you have shopped around and you know that
the new interest rate is still a low one, you will still do better to consolidate like this. It would not make any sense to do a debt consolidation to a high interest rate
credit card, so if you can't pay off your debt during the introductory period, make sure the new interest rate is better than you old ones.
Another idea you can
try to consolidate your debt is to borrow money from a family member. Then you can pay off your debt and avoid high interest rates and late fees. This usually works
out if you take the trouble to make a formal agreement whereby you will repay the loan at a fixed monthly amount and at a certain rate of interest. Since the family
member would be making less in a savings account, everyone can benefit.
There are also non profit organizations that will assist you in negotiations with your
credit card companies so that you can reduce your rates or extend your terms on your credit card debt and make them easier for you to repay.
