Credit card consolidation - is it right for you? If you're carrying a high interest rate across multiple cards, you may benefit from such services. With more and more Americans facing large medical bills, job loss, and other financial setbacks, credit card debt is higher than ever. And, with interest rates and late fees, it's not unusual for people to get in over their heads. Credit card consolidation helps consumers to better manage their debt and get back on solid financial footing once more.
Credit Limitation: This option only works if you have good credit; excellent credit is better. Balance transfer credit cards offer 0% APR on balance transfers when you open the account. An excellent credit score means you qualify for the longest 0% APR introductory period possible. Some cards have promotions that run up to 18 or 24 months. That gives you up to two years to pay off your debt interest-free.
For some people, debt is a financial fact of life. Sometimes, circumstances occur and financial setbacks take place. When this happens, debt resolution is an option. If you use a third-party debt resolution company, the company will contact credit card companies on your behalf and work on getting reduced rates. However, some debt resolution companies are not reputable, so you need to exercise caution before using their services.
But with the help of her credit counselor, she worked out a plan that got her out of debt in just 3 years. When she saw her credit card balances going down, she knew she made the right decision. With the money she’s saving, she plans to make a great down payment for a brand new car. And she looks forward to not stressing about how she’ll be able to afford the payments.

This is an excellent post with a very useful list of ideas. I am also blogging about how we changed our lives dramatically in order to save money, live more simply, and take control of our finances. My husband and I (and our dawg) moved into a tiny home, 125 square feet to be exact, and it’s paid for. And that process has revolutionized how we spend, live, and enjoy each other. While not for everyone, going tiny to simplify life has a lot of great side effects. I’m exploring specific ways we made this transition on my blog: http://www.onetinylittlehome.com and I’d welcome you to drop by and see how I go in depth on each change we have made and are making, and how it has changed our lives for the better. None of this was about sacrifice for us, we never lived “high on the hog” so to speak, but we took a number of financial gut punches right in a row. Therefore it was time to live the adventure of making new habits, changing our mindset, and living gratefully. I’m looking forward to sharing what we’ve learned so that we can help to take the fear out of it for other folks who are also experiencing financial devastation. It really is going to be ok, but only if you get proactive instead of reactive.
There is one more option that tries to split the difference between lower interest charges and lower payments. It’s called an extended repayment plan. This can be used to extend the term on a standard or graduated plan from 10 years to 25. It can lower your payments without the hassle of income certification. However, the payments will not be as low as what you can achieve with hardship programs.
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It might hurt your score. About 30% of your score is based on the amount of your available credit you use. If, for example, you have a credit line of $20,000 and you owe $10,000, you are using 50% of your available credit — and that will hurt your score. You want that percentage to be below 30 (and below 10% is even better). Your best bet may be to put a small, recurring charge on the Wells Fargo card and automate payment. That way, you will be using a tiny percentage of that credit line (and that is potentially helpful, so long as you pay on time). For more, see
Unless you file for Chapter 7 bankruptcy, which can take as little as six months to complete, debt settlement is typically the fastest way to get out of credit card debt. Debt settlement programs can be completed in as little as 12 months, depending on your financial situation. Even if you have limited funds for generating settlement offers, a good debt settlement company may be able to help you set up a plan that would have you out of debt less than 48 months. That’s equal to the average term you’d face with a debt consolidation loan, and you’ll likely eliminate your debt for half the cost!
Unfortunately, not all debt relief companies offering this service really help. But that is because they fail to address the source of the problem – the bad spending behaviour. While it is important to pay off what you owe, it is equally important to learn how to curb your spending. Some people tend to backslide to their overspending ways after a debt or two are paid for. This is a big no-no and could get you back in the same situation you started from. Any extra cash should be saved and if you can, stop using your credit cards!
Debt consolidation loans can save you money in interest charges, make budgeting easier and reduce bill-paying stress. If not used wisely, though, a debt consolidation loan can add to your troubles. For example, you take out a loan to pay off credit cards and then start using those cards again, you are digging an even deeper hole that you may not be able to climb out of.
If you are struggling to make your monthly credit card payment, or can’t catch up with your past-due payments, we may have solutions for you. The sooner you contact us, the sooner we can determine what help may be available. We will review the nature of your hardship and your financial information to determine what payment solutions you may qualify for.
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