Overlooking a credit card payment is expensive--credit card issuers typically charge about $35 for failing to make your monthly minimum payment by the deadline shown in your statement. Debt consolidation offers several benefits for borrowers dealing with multiple accounts and high-cost credit card debt.
- Simplifying debt management: Consolidating credit card debt with a debt consolidation loan or by transferring balances to a credit card offering a no- or low-interest introductory period can help with reducing the potential for overlooking payments. When shopping for debt consolidation loans or balance transfer offers, read the fine print carefully for determining all costs involved. Debt consolidation through a credit counseling service is another option for simplifying your debt and reducing its cost. These services negotiate affordable repayment terms with your creditors and assist with developing a cash-based household budget and affordable debt consolidation plan.
- Reducing the cost of credit card debt: Debt consolidation loans may offer lower interest rates and credit counseling programs negotiate reduced finance charges with your credit card companies. Shop for loans and balance transfer offers by checking and comparing the annual percentage rate (APR) for each option you're considering.
- Starting your path toward freedom from debt: Borrowers who can avoid incurring additional credit card debt can use debt consolidation methods for easing their way out of multiple-account credit card debt. Debt consolidation can cost less than the APR charges on your credit card accounts. Lower finance charges provide lower payments and can help with paying off your debt faster.
Comparing debt consolidation options, features and benefits can be your first step toward becoming debt-free.
About the Author:
Karen Lawson is a freelance writer with 20 years of experience in mortgage banking, mortgage loan servicing and home loan loss mitigation programs. She holds B.A. and M.A. degrees in English from the University of Nevada, Reno.