The Ins and Outs of Credit Card Debt Consolidation You Should Know

This is a guest post by Jenney Roberts, a financial writer  with specialization in dealing with financial problems and its solutions. She is well equipped to write articles on debt consolidation, savings, planning, frugality, debt settlement etc.


Have you been missing your credit card payments for the last few months? If answered yes, your accounts will most likely be turned down to collection agencies and you’ll start getting harassing collection agency calls day and night for the recuperation of the money. If you’re aware of the ins and outs of the debt consolidation services, you can easily achieve success with credit card consolidate. Credit card consolidation has many forms and unless you’re aware of all of them, you can never take the best decision regarding your present financial state. Have a look at some debt consolidation ways that you can adopt in order to delete your financial worries.

Combining your debts through a debt consolidation company

If you want to get help from a professional company, you can enroll yourself in a debt consolidation program through which you’ll get financial assistance to combine your debts into a single monthly payment. The debt consultant will negotiate with your creditor in order to lower the interest rate and the monthly payment on the multiple accounts. As soon as your creditors agree, you have to start making a single monthly payment to the credit card consolidation program and these payments will be disbursed off to your creditors. All your late fees will be waived off too.

Combining your debts on your own by taking out a new lines of credit

Apart from taking help of a professional company, you can also consolidate your debts on your own. Here are some steps to take.
  1. Take out an unsecured debt consolidation loan: Go to a bank and take out an unsecured debt consolidation loan so that you can easily use the proceeds in repaying your debt obligations. Once you finish repaying all your creditors, you can easily start repaying the new loan in small and affordable monthly payments. Make sure that the interest rate on the debt consolidation loan is low enough so that you don’t end up paying more on the interest rates throughout the extended term of the loan.
  2. Take out a home equity loan: If you’ve accumulated enough equity in your home, you can easily tap the equity and take out a home equity loan. The interest rates will be much lower than the unsecured debt consolidation loan and the repayment term will be stretched. You can easily repay in small and affordable monthly obligations too. However, defaulting on the payments may lead to a forced foreclosure of your house.
  3. Transfer your balance: You can transfer your balance to low rate balance transfer card within the introductory period. Shop around for getting the card at the lowest rate and with the longest introductory period so that you can save a huge amount of money while repaying your debts.
Thus, when it comes to credit card consolidation, you should always remain aware of the various options you can choose. Know the ins and outs of each option before choosing so that you don’t fall in a mess in the long run.

2 thoughts on “The Ins and Outs of Credit Card Debt Consolidation You Should Know”

  1. Practically, the above article may not applicable in Malaysia.

    1. If the credit scores (via CCRISS) is bad, you may not have the opportunity to get a housing loan / secured term loan, or credit balance transfer. Especially when you have a “3” on the CCRISS, or you have utilized 70% of the credits line.

    2. Do we have licensed or recognized “debt consolidation company”? If not, the financial institution simply can rely on Banking and Financial Institutions Act 1989, or Personal Data Protection Act 2010, or Credit Reporting Agencies Act 2010, to shut the door of negotiation by a third party.

    Just my two cents.

    1. Hello Clement, thanks for your comments. I visited your blog and it contains very useful information for the rest of us who are not in legal/law profession. Please keep on writing; I’ll be following your blog from my blogroll for sure!

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