Search

 

 

Informative Articles

Get A Cheap Credit Card By Understanding The Fees
Credit card companies charge fees of some sort or another. The key is to find a card with the lowest fees for the services you use. For instance, if you use cash advances, then investigate those fees with credit card companies before you sign up...
Learn The Credit Card Business Jargon And Stop Your Debt Cold
Credit card companies, as part of the financial industry, use a massive array of jargon. If you understand the terms you can stay on top of your credit card debt. While you can't be expected to recognize all the technical terms, some of them are...
Student credit cards: Basic guide
Many students start becoming consumers of credit when they get their first student credit card in college. Student credit cards can give them a highly convenient way of making purchases; however this is also a time of great responsibility as they...
Taking Control of Your Credit History
Your credit history is important; in fact, in this day and age, only family and your time are more important than your credit history! The first time you established a payment commitment over a period of time for a purchase, you began your history...
Your Credit Report, A little Improvement Can Go A Long Way.
You may think you have a marvelous credit report, be cautious of the mistake factor. Just as you receive mail with your name and address misspelled, your credit report can have errors just like anything else. Whether it is someone’s typing over...
 
Credit Card Debt Consolidation: Top 3 Factors To Consider

If you've got a number of credit cards and insurmountable credit card debt, then perhaps it's time to consider a debt consolidation loan. A consolidation loan is a loan that you can use to pay off all your debts, meaning that you can pay them off for less money without having to worry about lots of different bills.

For instance, if you had borrowed $3000 five years ago, you may now owe $5000 (principle plus interest). A debt consolidation program may involve eliminating some amount of interest so that you pay less than $5000.

Also, your previous outstanding balances may be on five different credit cards. You need to pay 5 bills every month. Once you participate in a debt consolidation program, all your accounts will be consolidated into one account. You now pay only one bill each month.

In a credit card debt consolidation, your average interest rate may be reduced. All your loans can also be transferred to one single card that has a lower interest rate than the ones you are currently paying.

Here are top three factors to consider for Credit card debt consolidation:

1. Interest Rate

Get the best interest rate you can if you opt for debt consolidation. This interest rate is almost as important as the one on your mortgage, but much harder to change after you've signed on the dotted line. Don't be fooled by any offers that give you a good rate for a limited time - you're going to have this loan for quite a while.

Interest rates for credit card debt consolidation loans through traditional lenders may be based on your credit score. If high, you are likely to get a credit


New In Paperback, Sept. 6-12
As summer ends, it's time for brainy reads you may have missed in hardcover. <em>Wolf Hall,</em> set in the court of Henry VIII, won the 2009 Booker Prize. Former nun Karen Armstrong takes on the atheists in <em>The Case for God.</em> Barbara Ehrenreich pops the bubble of American optimism with her usual wit -- and more.

Children's Book Finds Hope In Haiti's Rubble
Nine months after the quake in Haiti, Haitian-born author Edwidge Danticat is sharing the earthquake story with an audience that was largely shielded from it -- children. <em>Eight Days</em> is a book about a boy who gets buried in the rubble and is not rescued until eight days later.


card debt consolidation loan at a lower interest rate. If the credit score is low, credit card debt help companies may be able to help offer methods for raising your credit score.

2. The loan tenor or length of the loan.

The most overlooked aspect about debt consolidation loans is that the ones with lower payments generally last a very long time - you may end up paying it off for twenty years, or even longer. You should try to find a loan that doesn't last as long, and asks for payments that are as much as you can afford.

3. A payment sum that you can manage.

Almost without exception, the loan will be secured on your home. That means that if you start missing payments, the finance company will kick you out, take ('repossess') your house, sell it, and pay back the debt with that money.

There's a whole industry around property developers buying repossessed houses and selling them on for a profit. The chances are that you'll come out of it with nowhere near enough money left to buy even the smallest home, and nowhere to live. So be sure, to go for a plan that you can safely adhere to, without losing your home!

If you do take a debt consolidation loan, you need to read all the fine print. Good luck!
About the Author

Elaine Lim used to be a research analyst from a bank and now hopes to share her expertise through publishing information on consumer credit. She hopes to help others in their financial planning, debt management and credit repair. For more free tips and resources, please visit http://www.credit-cards-eguide.com.