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Credit Card Counseling Debt Consolidation

January 2, 2012

Credit Card Counseling Debt Consolidation

Credit card counseling debt consolidation can be your saving grace in getting out of debt. Good news is that both debt consolidation and credit card counseling most always go hand in hand, as when you work with a consolidation company they have highly training credit specialists which who assist you in creating a plan of attack to get you out of debt. Besides consolidating your credit card debt, debt counselorscredit card counseling debt consolidation can also assist you in managing your debt, so you don’t end up in debt again.


Credit Card Counseling Debt Consolidation Methods

For the most part credit card counselers will assist you in understanding 3 different forms of credit card consolidation, those of which include:

  1. Consolidating On Your Own – You can consolidate your credit cards all on your own by making a tranferring all of your debts to a credit card which requires you to pay a lower interest rate than you are paying on all of your other cards.
  2. Consolidation Negotiation – Credit card counseling debt consolidation professionals can actually reduce your entire amount of debt by as much as 60%, and get you compeletely out of debt in as little as 10 to 25 payments. This is done by communication between both your credit card companies as well as the counselers, where a lower interest rate as well as debt total is attempted to be decreased, creating a much more suitable payment plan for the one in debt.
  3. Consolidation Loan – Credit card counseling debt consolidation can also be done by taking out what is called a “consolidation loan” through a company, which comes in the form of a secure loan which are known to have lower interest rates, which will enable one to to have much lower payments as well as pay a lot less over the life of the repayment. These sort of loans for the most part require that you put up “collateral”, which is something valuable like for example a car, which if the loan payments are not paid, then the collateral is taken from the person paying off the debt.

These are the main types of consolidation methods that credit card consolidation counselers will propose, but there are other form of debt relief that are offered by credit card counseling debt consolidation companies like debt settlement and debt management programs (DMP). The goal of the counseler is to find out what method of debt relief is best for your personal debt situation.

Credit card counseling, at the end of the day should be used by those who are having serious trouble paying their credit card debt off, which the minimum payment is only covering the interest that you have to pay, and not going towards paying off your debt total. Debt consolidation counseling will enable you to work with a professional who is dedicated to getting you better terms and out of debt a lot faster, instead of going into the debt consolidation process yourself without proper education, which can add more insult to injury.


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