Sunday, January 6, 2013

Best debt to best business credit card consolidation

Having too indebted credit card is a feeling uncomfortable and helpless. However, if you are in a pile of debt, you have options. There are many types of consolidation; the best type for you depends on your situation and the importance that you place on your credit score.

Debt consolidation loan
The more classical type of debt consolidation is to take a loan equivalent to your amount of credit card debt and pay off the coast of your credit cards with the loan. This type of consolidation can save you, especially if you get a lower interest rate on your loan than your existing card rates. In addition, you eliminate the stress of remembering when all your different bills are due. However, taking a loan of consolidation of debt, leaves open the possibility of filling up to your cards once again, while you pay your loan, so be careful if you pass by there.

The debt management program
Another option to consolidate your debts is to register for a program of managing debt with a credit counselor. In this scenario, make you your payments to the credit counselling company, who then pays the credit card companies. As a benefit to join the program, you will get reduced interest rates. As the debt management program providers most belong to issuers of credit cards, they will help you to ensure that they get their money. However, you may need to close your credit accounts to join the program.

Securities settlement program
Debt settlement is an option that is heavily advertised on television and radio, but can have serious consequences in the long term. This option is similar to a program of debt management that you make payments to a company that manages your payment of the debt, the idea being that this company can then settle with your creditors less than you actually need. However, while doing so, you are encouraged to make the monthly payments on your cards, which can open the door to late fees, negative marks on your report of credit, prosecution and even wage garnishment. In addition, any account just you less that your full balance will be indicated as such on your credit report, something that will hurt you in the future.

Avoid debt Consolidation
Although debt consolidation is a popular way to get out of debt, it is far from the only way. You can try to call your credit card companies to see if you qualify for a better interest rate. You can also search in the software of the computer, such as ZilchWorks, which can create a practical plan to reimburse you for your credit cards. Finally, you can see if you are eligible for an adjournment on your card that will allow you to discover a plan for your debt regardless of the monthly payments.