5 Tips On Credit Card Consolidation

Here are some great tips on credit card consolidation to help you manage your debts
more effectively.
1) Draw up a financial budget. Yes, I know it is boring but you will never be able to
get out of debt until you know exactly how much you earn and what you spend your
money on. In order to get a true picture, you need to keep a spending diary for a
month. Write down every cent that you spend. This is the only way you will be able
to find those holes in your spending that need to be plugged. It will also highlight
areas that you could cut back on in order to release the money to pay towards reducing
your debts.
2) You need to make a list of all of your creditors stating their name, your account
number, the total amount you owe, the minimum monthly payment, and the interest rate
you currently pay.
3) Now you have your financial budget and the list of your debts, you can see how
much extra a month you can afford to start paying to eliminate your debt. While you
are completing this exercise you should keep your minimum monthly payments going.
4) If your accounts are up to date and you have an excellent record with these credit
card companies, ring them up and ask them if they can do you a special deal on the
interest rate you are paying. You may be pleasantly surprised when they say yes. The
lower the interest rate, the more of your money will go to reducing your debts. They
may ask you to move your other debts to their card in return for a great deal. This
may be the best way to achieve credit card consolidation but don’t jump into anything
just yet. Ask them to confirm the deal in writing making sure that they confirm the
charges and the percentage minimum monthly payment you will be expected to make. You
can then review these offers and pick the best one for you. Don’t always go for the
lowest interest rate. 0% over 6 months is great but 2% over 24 months is better if
your financial budget has indicated this is how long it will take to clear your
debts.
5) If your current creditors won’t help, don’t be tempted to take out a loan secured
on your property to repay these debts. This is one of the last solutions you want to
do as effectively you are giving your creditors more protection and yourself less.
The best bet before you enter into any form of consolidation is to speak to a
qualified advisor first. Don’t pay for this advice as plenty of charities will
provide it for free. Remember you are on a mission to cut your spending in order to
get out of debt.
I hope that these 5 tips on credit card consolidation will help you to repay your
debts faster.