Credit Card Bill Consolidation

When paying with plastic gets you in trouble, turning to credit card bill consolidation will lower your bills and help get you out of debt. Debt troubles almost all Americans, and many of them have, or will, turn to credit consolidation to make the process easier. The first step to lowering and getting rid of debt is to stop creating it! Freeze all of your credit cards and stop applying for new ones before you consider credit card bill consolidation. It may take a bit of a lifestyle change to have to wait to buy something, but clearing your debt and improving credit score will allow you to buy better stuff later on.

Credit card bill consolidation is a fairly simple process. You sign up with a consolidation company and they take a close look at your current credit report to see all of your debt. They will contact all of the banks and creditors that you owe money to negotiate the amount owed. After they have completed their negotiations, they will contact you with a monthly payment amount and terms of your deal.  You will then make monthly payments to the credit card bill consolidation company.

Let's take a closer look at the credit card bill consolidation process.

Image courtesy of Andres Rueda via Flickr.
Image courtesy of Andres Rueda via Flickr.

Managing Debt

Just because you have credit card debt just like all other Americans doesn't mean you should keep growing it, like most other Americans. If your monthly payments for your credit cards aren't paying down your principle and keep going up without you using them, it's time to visit a credit card bill consolidation company. Debt is extremely stressful, but taking care of will remove that huge weight from your shoulders.

Many of the credit card bill consolidation companies, especially the nonprofit ones, will help you set up a personal budget that will help you continue paying all of your bills without sacrificing the important things. Setting up a budget is easy, sticking to it is very difficult. The best method is to track every expense that you make and determine which ones aren't necessary.

When you settle credit card debt, you gain a new perspective on your finances.  Unfortunately, it takes most people getting in trouble to figure out where they stand.  If you can resolve debt before it gets this far, it's obviously best!

Credit Card Bill Consolidation Plans

Many consolidation companies will work with more than just your credit cards.  They will factor in all of your outstanding debts and lump them into one, easy to manage, monthly payment.  Your most current credit report is under review and the consolidation company will work with all of the debtors that you have.  

The amount of debt that you owe will be significantly reduced.  Banks, creditors, and collectors want your case to be closed, so they will waive some of the penalties and interest to get it done faster.  The size of the monthly payment will depend on the size of your debt and how much you make.  Most credit card bill consolidation companies will do their best to make the payment low enough for you to be able to afford.

What's The Next Step?

If you're doing research (like you're doing right now) you are well on your way to credit card bill consolidation.  Spend a little more time learning what you can about debt, then make some calls to different credit card bill consolidation companies to see what they offer.  This step is the hardest because you move from the planning to the action phase.  Take the leap!  You'll feel so much better after you do!

1 comment

jazzuboo profile image

jazzuboo 7 years ago from Queensland, Australia

"The first step to lowering and getting rid of debt is to stop creating it!" - Not a truer word has been said. So many will bend over backwards trying to lower their debt, and at the same time they are out shopping with their plastic!

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