What’s the best way to eliminate credit card(s) debt?

Posted on 2nd April 2010 in Eliminate Credit Card Debt

I’m in way over my head, as some would say. I owe a little over 5 grand on my primary credit card and the max is $5,300. I owe about $500 on another, and $400 for a traffic citation. What should I attack first? I have a little over $2,000 available. Thanks for your help.

try this and you will save a lot, reduce your debt and improve your credit rating.

1) pay the traffic citation.
2) transfer your 5500 balance to a new credit card that offer 0% INTRO APR with 12 months INTRO period. get one if possible one that don’t charge annual fee. if you can get the new card regular APR that is lower than current it would be great.
3)pay on-time minimum fee every time. make this a priority. try to set aside 2 months minimum fee in your safe. don’t use all the 2000 to pay the balance. you won’t accumulate new interest because the 0% APR so no need to rush. at least you can buy time to produce more income to pay the balance.
4)before the end of the INTRO period transfer your balance to another new credit card with the same features or better if you can find one.
5)repeat step 3 and 4 until you pay all the debt.
6)make sure you don’t accumulate new debt with new purchase because 0% INTRO APR usually only cover transfered balance.
7)credit card is an advantage if you play the game right.
it is a working tool to establish high credit rating which allow you to obtain finance easily which mean lower interest rate than credit card.

hope that helps a bit.

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Can Debt Consolidation Truly be the Best Choice for You?

Posted on 11th February 2010 in Best Debt Consolidation

The concept of debt consolidation is not clear to most of the people and they keep wondering whether to go for it. Well, whether a person should consolidate his loans is a relative matter, as it would depend on his personal and financial situation.

So before you decide whether to consolidate your loans, keep the following factors in mind:

Financial Savings

The most important point you need to keep in mind before consolidating debt is whether it would help you in saving any money. When you consolidate your debt, it implies that you already have a number of loans in your pocket, and if you have taken some of them when the market rates were high, you must be paying higher interests on them.

If you have a credit card, the interest rate on it would also be high enough. So if what you are paying now for all your loans is a big amount, it would be a wise idea to consolidate them and pay a single monthly interest which will be lower than what you had been paying so long.

Thus, when your monthly payments are being reduced after consolidation, you can expect to save some money now. However, you would not notice this benefit unless you take the credit for a longer term. So before actually consolidating, compare the interest of your existing loans with what you have to pay after consolidation, and see if you can ultimately save something with it.

Debt Consolidation Can Improve Your Flow of Cash

Proper debt consolidation can help you bring in more cash. This way you can stabilize your financial situation, be it a personal or a business debt.

It Can Save You From Stress

Poor financial condition is probably one of the major reasons of stress today, as each month one is left bothering about how to manage his credit payments. But with debt consolidation, one can bring down his monthly credit repayment amount to a more reasonable level, and thus do away with the pangs of anxiety before each repayment.

The Effect of Consolidation On Your Credit Report

How your new consolidated credit would effect your credit report would depend on your present location. Its true that your new loan will be included in your credit report, but if you are regular in making your repayments every month, you can surely expect to come out with a clean chit at the end of your credit period.

Gibran Selman
http://www.articlesbase.com/finance-articles/can-debt-consolidation-truly-be-the-best-choice-for-you-65223.html

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How Best To Use Debt Consolidation Loans

Posted on 27th November 2009 in Best Debt Consolidation

Debt consolidation loans can be a great way to fix bad credit or credit that is in trouble. A debt consolidation loan is a way to get debt under control.

Many lenders offer them and are willing to even extend a debt consolidation line of credit to someone who is facing credit problems. A debt consolidation loan can really help a person get their credit back in shape.

Debt consolidation loans are loans that are used to pay off debts. The idea is to pay off debts, especially those with high interest rates, so the borrower has only one bill to pay instead of multiple bills. Additionally, if the borrower can get a good interest rate on the loan, they can save a lot of money.

When getting a debt consolidation loan it is very important to get organized first. Before a borrower applies for a debt consolidation loan they need to figure out how much they need to borrow.

To do this they should gather all information for the debts they wish to pay off. If they are paying on debts that are in collections they should contact the collection agency to get the amount they will need to pay. This could be a good chance to get a settlement for an amount smaller than whet they owe.

The borrower should also get information on interest rates for each account. This will come in handy when searching for a debt consolidation loan because it will help the borrower to know what interest rate they will want to get.

It can be helpful to make a list with each debt amount and interest rate. This makes it easier to add up the amounts and find a good average interest rate. It also gives the borrower a visual of their actual debt situation. They may find they are not as bad off as they thought and see that getting a consolidation loan is not in their best interest.

Once the borrower has the amount they need to borrower they can start looking for lenders who can offer them the interest rate they need. It is very important to avoid an interest rate that is too high because in the end the total amount paid will be higher than if the original debt was paid to the original creditor.

Another point to keep in mind about debt consolidation loans is for the borrower to make sure they will be able to afford the monthly payment. After everything is figured, the monthly payment could end up being larger than paying each debt separately.

The point is to weigh what is more important – getting debts paid off now, or just following the original payment plans and saving money.

A debt consolidation loan can be helpful, but it can also lead to more troubles. There is no point in consolidated debts if it will cost more in the end. The borrower has to look at all aspects of the debt consolidation loan to make sure they are getting the best deal.

James Copper
http://www.articlesbase.com/non-fiction-articles/how-best-to-use-debt-consolidation-loans-136999.html

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Shopping Around For The Best Possible Debt Consolidation Loan Rate

Posted on 5th November 2009 in Best Debt Consolidation

If you’ve made the decision to apply for and attempt to obtain a debt consolidation loan, you likely have many questions. Many of these questions likely center around how you can make sure you get the best possible debt consolidation loan rate.

There are some tips and pointers that you will want to keep in mind when it comes to getting the best debt consolidation loan rate. Through this article, you will be presented with a basic discussion of the importance of really taking the time to shop around for the best deal on a debt consolidation loan rate. In the end, shopping around truly is the only way in which you can assure that you obtain the best deal on a debt consolidation loan rate.

Of course, and as has been mentioned, the primary benefit associated with the process of in depth shopping around is the ability to enhance your chances to get the best possible debt consolidation loan rate. There can be some pretty significant variations in the interest rates charged from one lender to another when it comes to a debt consolidation loan rate. Therefore, taking the time to shop around and do some interest rate comparisons will prove to be nothing short of time very well spent.

As it relates, by shopping around you will also be able to find the best rates when it comes to the other fees and charges that are associated with a debt consolidation loan. These fees can add up pretty significantly and can be rather sizeable expense when it comes to an auto loan. And, there are differences in the fees and other costs and charges from one debt consolidation lender to another in this day and age.

If you want to find the easiest and most convenient course to take when shopping around for the best debt consolidation loan rate available, the Internet and World Wide Web can be an invaluable tool. From the comfort of your own home and in a matter of minutes, you can undertake a comparison of a number of different lenders and their debt consolidation loan rate options. You can compare interest rates, company history and many other factors through the use of the Net in your search for the best deal on a debt consolidation loan rate. Moreover, there are some solid sites that can aid you in determining what you should avoid when it comes to finding a reliable and reputable lender that specializes in a debt consolidation loan.

Finally, when it comes to shopping around for the best debt consolidation loan rate, don’t forget about the importance of talking to other people. Even in this high tech age, even in this age of mass communication, friends, family members, neighbors and colleagues can be fantastic resources of information and guidance when it comes to trying to select a good debt consolidation loan rate.

Thomas Erikson
http://www.articlesbase.com/finance-articles/shopping-around-for-the-best-possible-debt-consolidation-loan-rate-115065.html

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