Cut Credit Cards
Has your credit card debt spiraled out of control? Improving financial status requires practical solutions and determination. Sometimes people can manage debt reduction on their own. If you feel overwhelmed, you can consolidate credit debt with the help of a professional debt counselor.
A few respected professional services offer counseling or programs to consolidate credit debt. Their ratings vary, so be sure to check with the BBB. Look for a highly rated company, such as CuraDebt.
Don’t jump right into it. Get organized and assemble all your financial details. Consider whether you will end up paying more than you could afford. Decide if you have the skills and discipline to set aside your cards and consolidate credit debt on your own.
The support and experience of a debt management service may save you time and stress. They may help reduce the interest rate on your credit debt consolidation loan. Take these steps to advance toward your credit card debt reduction effort before you contact Curadebt or another service:
1. Debt Elimination Time Frame
You must set a specific time frame for your debt elimination before determining how much you can pay for your debt settlement each month. The monthly loan payment when you consolidate credit debt to become debt free will rise or fall depending on the time frame you choose.
2. Flexibility In Your Debt Elimination Campaign
Don’t expect them, but allow for financial emergencies in the middle of paying off your debts. When choosing a debt consolidation service, make sure they will allow flexibility or changes in your payment options in case a true emergency should arise.
3. Cash For Purposes Outside Of Debt Settlement
Life goes on. So do rent or mortgage, utility bills, school, household and medical expenses. What is your source of cash for purposes outside debt settlement?
A few credit companies hold tight reins on your funds. You don’t need more stress over the inaccessibility of ready cash when you encounter financial emergencies. Use this as one determiner when seeking a debt relief program. Look for a debt settlement plan that will have extra funds available when such emergencies occur.
4. Impact On Credit Rating
Your FICO score can be impacted by some debt settlement methods. If your credit rating is still fairly good, find a program that will eliminate your existing credit card debts without hurting your credit status. Evaluate alternatives that could make your FICO score increase rather than drag it down. Be sure to make on-time payments, and pay double the minimum monthly payments when possible.
5. Fees and Charges To Consolidate Credit Debt
You may be able to find a free credit card debt elimination program, but these free programs are more often limited to credit counseling. Most professional companies charge for service.
The fees and charges to consolidate credit debt or enter into debt settlement arrangements can vary considerably. It’s important that you understand the cost before you commit your involvement. Some may have attorney’s fees, processing charges and other up-front costs. Others charge a percentage of what is saved on a settlement agreement. Watch out for hidden fees. Insist that all fees and charges are disclosed in writing.
Responsible use of credit cards and lines of credit is generally the first practical step toward becoming debt free. When you don’t have enough money, paying with a credit card is clearly not a practical solution. Your debt can become immense if you don’t pay the balance in full each month. If you are faced with choices such as either paying your credit card bill, utilities or car payment, then it’s time to get organized about paying off or settling debts.
If you can do it on your own and save some money in fees, great. But the support of an expert counseling service may be the most practical solution to consolidate credit debt and learn better habits to remain debt free and in control of your finances.
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