The majority of adults in the United States own and regularly use credit cards.  The convenience and availability of credit cards has led to the popularity of this form of currency, causing some consumers to “get in over their heads.”  Falling behind on payments can result in even more financial debt and poor credit ratings.  Credit card debt consolidation loans may offer some relief for this type of consumer credit difficulty. 

Credit card debt consolidation loans are very enticing in that they may actually save the borrower money, by reducing the Annual Percentage Rate (APR) being charged against their debt. 

Making a payment on a credit card after the due date can result in a hefty late payment fee.  These fees can add up significantly if they are being accrued on several different cards, since they are also included in the debt affected by the APR.  Generally, credit card APRs are much higher than for loans from other sources.  Therefore, late fees can really significantly increase the balance and expense of a credit card.  With a credit card debt consolidation loan, the interest being attached to the late fees is eliminated. 

An additional factor to consider when looking into a credit card debt consolidation loan is the number of credit companies that are owed money.  If only one company is owed a small amount, then a credit card debt consolidation loan is probably not the best plan.  However, if more than one company is owed a significant amount of money, a credit card debt consolidation loan might be the perfect option.  A credit card debt consolidation loan will combine all credit card debts into one lump sum; meaning only one payment will have to be made each month.   This payment amount will be based on the borrower’s budget, so it should be affordable for anyone. 

A credit card debt consolidation loan can also ensure a lower APR.  Being late with a payment on a credit card gives the company the right (as expressed in the credit card agreement) to increase the APR charged on that credit card.  Some APRs can exceed the 20% mark due to delinquency on the part of the borrower.  An APR that is calculated at this rate really makes it difficult for borrowers to get out of debt.

Many people have tried calling their credit card companies on their own to request a lower interest rate.  Sometimes the company will honor the request.  However, it is quite rare for a credit card company to lower the interest rate for a customer who does not regularly pay their bill on time.  In this case, a credit card debt consolidation loan can be very helpful.  When credit card debt is consolidated, the lender will often work to get the APRs reduced to more manageable percentage rates, thus saving the borrower money and allowing the debts to be paid off more quickly.

Sometimes, people with significant debt do not want to settle for a lower APR and a lower monthly repayment amount.  They would like to see a reduction in the actual amount owed.  Unfortunately, a credit card debt consolidation loan cannot guarantee that will happen.  More than likely, the balance will have to be paid back in full.  A credit card debt consolidation loan is not a “get out of jail free” card.  It simply helps a person manage the debts they have accumulated.  

A possible drawback to the credit card debt consolidation loan program is the effect it can have on one’s credit report.  If a debt consolidation company’s service is used, a Third Party Administered (TPA) note will appear on the credit report for any bills they helped manage.  The TPA note can be a deterrent to future creditors.  For this reason, many choose to forgo a credit card debt consolidation loan and attempt to find a solution on their own.

However, even though a TPA note is not a highly regarded mark on a credit report, it is preferable to having a late or nonpayment notation.  A TPA shows future creditors that the borrower had financial difficulty in the past, but attempted to resolve it in an efficient and timely manner.  This mark actually shows that the borrower took responsibility for their financial affairs, which is something that lenders take into consideration when loaning money to consumers.

For consumers who are having trouble managing credit card debt on their own, a credit card debt consolidation loan may be the solution they need.  While this loan does not promise to eliminate debt altogether, it can simplify the bill paying process, help keep interest rates under control, and possibly reduce the total amount owed.  These benefits alone make a credit card debt consolidation loan an attractive solution for those with too many credit cards in their pockets.

Consumer debt is a rising epidemic in American culture today, with average debt quickly approaching $15,000 per US household.  Considering the fact that the US is one of the richest nations in the world, what is causing this inability of individuals and households to fulfill their monthly financial obligations?

It’s no longer a closeted fact that the nation’s liberal use of credit cards underlies this American debt epidemic.  It is estimated that 40% of American households spend more than they earn on an annual basis and our easy access to credit cards is a major cause of these blind spending patterns.  Individuals and families that lack the responsibility to keep up with monthly financial obligations simply dig themselves deeper into the black hole of consumer debt.

Overspending is not the only cause of consumer debt.  Financial crisis’s can happen to anyone at any time and leave a painful burn in your financial disposition.  Job loss, medical bills, and car repairs are some urgent expenses that require fast and easy access to money and often credit cards are the simplest solution to the problem.     

Credit card debt occurs when the holder of a credit card purchases a product or service via their credit card company and fails to pay off the balance of the credit card at the end of the repayment period.  Credit card debt accrues due to the outstanding balance on the credit card along with the interest expense and late payment penalties. The ramifications of credit card debt, or any type of consumer debt for that matter, should be taken very seriously.   Bad credit is a consequence that one should never be willing to risk.  Poor credit causes a significant reduction in your credit score along with numerous other problems, such as difficulty in renting a house or apartment, being hired for a job, and being approved for future loans.  Furthermore, a poor credit rating causes a person’s loan interest rates and insurance rates to increase bringing further expenses to the table.  It just isn’t a situation that you want to experience and the bad news about credit card debt doesn’t end here.

When an individual fails to pay off the balance on their card, the credit card company contacts a credit rating company and reports the client’s default on his or her credit card.  A default made on your credit card results in increased rates and terms on the credit card by your credit card company.  What’s even worse, is that when other creditors discover that you have defaulted on one of your consumer debts, they may also decide to increase the rates and terms on your loan with their company even if you have not defaulted with that creditor.  This incident is known as the ‘universal default clause’ because when one creditor makes a default complaint on your part, other creditors respond by adjusting your loan from normal terms and conditions to default terms and conditions.  This means that you can end up with increased interest rates on multiple loan which can dig you even deeper into the black hole of debt.   

By now, the point should be very clear to you that credit card debt is a dreadful situation to be stuck in and that’s why financial responsibility is very important for all of us to seek.  Once your credit rating drops from good to bad, it is extremely hard to build your score back up to a satisfactory level.  Furthermore, who wants creditors and debt collectors hounding you down just to get money for all your outstanding debts?  That would be a nightmare.  Individuals that have a credit card should approach it with a careful and responsible attitude toward spending.  You should only purchase items that you are certain you can afford to pay for when the repayment period rolls around. If you are a person that tends to engage in impulsive spending, you should leave your credit card at home and only walk with a reasonable amount of cash to avoid overspending and impulsive buying.

In the 1980s, credit cards were something of a status symbol.  Today, having a credit card is the norm for any average working adult.  Unfortunately, the popularity of credit cards has led to an increase in the number of people who need to eliminate credit card debt.  This isn’t a problem for the average credit card user, but a number of people have amassed debt that they cannot possibly pay off on their own.  However, an informed consumer can be one step closer to accomplishing this goal.

There are many challenges that a person can face when attempting to eliminate credit card debt.  The first of these challenges involves the Annual Percentage Rate (APR).  Often a company will attempt to entice new borrowers by offering a starting low interest rate.  However, the first time a bill is paid late, the credit card company has the right to significantly increase the APR.  Paying late multiple times can result in an incredibly high APR, which in no way helps the borrower eliminate credit card debt.

Trying to eliminate credit card debt when a hefty APR is involved is very difficult, especially if only the minimum payment can be afforded each month.  As the APR continues to increase the principle balance by adding interest and late payment fees, the opportunity to pay off the debt in a timely manner begins to decrease.  In order to start seeing any debt relief, or to eliminate credit card debt, it is important to always pay these bills on time.card debt,

Some people choose to put off paying their credit  and focus on paying other debts instead.  They remain timely on other bills, but do not realize that to eliminate credit card debt first is actually the smarter choice.  The APR on a delinquent credit card is often much higher than on any other type of debt.  It is better to only pay the minimum payment due on a credit card than to not make a payment at all. 

To eliminate credit card debt, it may be necessary to seek outside assistance to pay off bills.  This debt relief can come in two forms. 

The first way many choose to eliminate credit card debt is through bill consolidation.  Consolidation is when an outside lender combines various credit card balances into one bill.  This can be to the advantage of the consumer in that there will only be one due date per month, once the consumer has chosen consolidation.  Often, bill or debt consolidation also means a lower monthly payment, than what the payment would be if the consumer were paying each credit card bill separately.  This option alone can provide consumers a significant credit card debt solution, when they are truly seeking to eliminate credit card debt.    The other advantage to bill consolidation is that the lender will often negotiate with credit card companies to get a lower APR.  This allows the borrower to pay off the total debt a little faster and save a lot of money on interest over the term of the loan.  Securing a lower interest rate will definitely help eliminate credit card debt quickly.

Many people choose credit settlements as their choice credit card debt solution.  To eliminate credit card debt with this method means that a lender works with each credit card company to come up with a settlement amount that would pay off the credit card now.  This is appealing to many creditors because, even though they get less money than they are owed, they get the money immediately. This solution guarantees that the account won’t go into default (where the creditor might not get paid back at all).  Once a price has been agreed upon, the settlement company will pay off the total debt on the customer’s behalf.  The borrower will then make one monthly payment to the credit settlement company until the balance is paid in full.  This is a very effective method to eliminate credit card debt.

There are advantages and disadvantages to both methods.  With consolidation, the principal balance does not decrease, but the APR usually does.  However, with bill consolidation, a Third Party Administered (TPA) mark may appear on the borrower’s credit report and remain there for ten years.  This mark does not mean a person has a bad credit report.  On the contrary, a TPA just shows that a person who once needed credit card debt help acted responsibly and received aid in finding a credit card debt solution. 

The down side to working with a credit card settlement companies is that they are not federally insured like credit card companies.  If the settlement company is a reliable one, this can be a great method to pay off bills.  However, a less reputable company might attempt to deceive its clients by using a variable APR or in other ways.  Since many settlement companies are not insured, there may be very little recourse for the borrower in case of fraudulent activities by the lender.

Credit card debt is a growing problem in the United States.  Fortunately, consumers in need of help can find debt relief through various methods.  No matter what course is decided upon to eliminate credit card debt, it is important to stick to the plan and plan for the future.  The only thing worse than having to eliminate credit card debt is to have to eliminate credit card debt a second time.

A number of American adults struggle with financial issues; one of the most common is that of credit card debt management. Credit card offers arrive in our mailboxes almost daily, and many of the deals seem too good to pass up.

For the average person, each offer is weighed and measured according to how it may help the individual’s financial situation. But, for the individual already struggling with financial pressures, the temptation of one more credit card may be too hard to resist. If an individual is already thinking about credit card debt management, then this is not the time to be thinking about opening new lines of credit.

Many people take out multiple credit cards, because the credit card companies present such enticing offers. However, few understand that having a lot of available credit may lead to overspending.

For this reason, some Americans have found themselves in a position of needing to seek advice on credit card debt management and solutions.

Credit card debt management begins with accepting responsibility for one’s own finances.

The focal step in credit card debt management is to create and maintain good budgeting habits. To ease the first step in creating your budget, use simple calculators online to get started. When one sets a budget, the first step is to know how much is required to pay all of one’s monthly bills. After all monthly bills are accounted for; any excess income will be best applied towards the least desirable bill.

Practiced credit card debt management can effectively help the individual borrower quickly eliminate debt. Identify the lender who charges the highest Annual Percentage Rate (APR) and try to eliminate credit card debt quickly. When the balance has been satisfied on that particular card–destroy it. Stick to this credit card debt management plan until there is no more debt. This goal may take some time to achieve (perhaps even years).

Credit card debt reduction can also be achieved is by transferring the balance of a credit card with a high APR to a card with a 0% or low-percentage APR. Many companies include free balance transfers or promotional APRs for six months to a year. Paying off the transferred balance in full by the time the deal expires may be an effective and inexpensive method of credit card debt management and elimination.

However, there are a couple of reasons that this method may not advisable. If the promotional deadline date is exceeded, the APR on balance transfers is often much higher than on normal purchases. Also, if a late payment is made on a credit card that offered a special interest rate, the original low-interest offer can be nullified, and additional late fees may be charged to the account. If the promotional deadline date is exceeded or a late payment is made, one may again have a high-interest credit card with a large balance.

Bill consolidation is often presented as a viable and safe alternative to self-directed credit card debt management. A consolidator combines all current credit card balances into one single monthly payment. This type of credit card debt management can even be an enticing solution for those who find it difficult to remember their multiple due dates. As an additional advantage to using a debt consolidation company, they can often lower the APR on any outstanding balances, resulting in additional long-term savings for the consumer.

Many credit card debt management companies recommend credit settlements as an additional consideration. A credit settlement company is similar to a bill consolidation company, in that the bills from multiple credit cards are lumped into one monthly payment. However, credit settlement companies will also work with the credit card company to lower the total outstanding balance. Once an amount is agreed upon, the settlement company will pay the lender the total amount owed. Then the borrower will pay the credit settlement company one monthly payment until the debt is satisfied.

For the average consumer, a good budgeting plan will always be the best option. However, if the debt load is high, using a third-party company to help manage the debt could save the consumer more money and help eliminate the debt more quickly. Balance transfers are great for people whose balances can be paid off in 6 to 12 months. For those with a debt load that cannot be paid in the 6 to 12 months allotted in the credit card offer, bill consolidation or debt settlement will definitely make more sense. Whatever option you choose is up to you, but hopefully, you now have the information to make the best decision given your financial condition.

Companies will also work with the credit card company to lower the total outstanding balance. Once an amount is agreed upon, the settlement company will pay the lender the total amount owed. Then the borrower will pay the credit settlement company one monthly payment until the debt is satisfied.

For the average consumer, a good budgeting plan will always be the best option. However, if the debt load is high, using a third-party company to help manage the debt could save the consumer more money and help eliminate the debt more quickly. Balance transfers are great for people whose balances can be paid off in 6 to 12 months. For those with a debt load that cannot be paid in the 6 to 12 months allotted in the credit card offer, bill consolidation or debt settlement will definitely make more sense. Whatever option you choose is up to you, but hopefully, you now have the information to make the best decision given your financial condition.

In this new millennium, it is becoming increasingly rare for consumers to use cash to pay for their expenses.  Most people today use credit cards to purchase everything from gasoline for their cars to the clothes in their closets.  The unfortunate consequence of this shift in behavior is that credit card debt is at an all-time high.  Eliminating this type of debt can be difficult, since many people are only able to pay the minimum monthly payment each month and the interest rates are extremely high.  Under these conditions, it can take years to pay off even the smallest credit card balance.  One solution for this problem is to apply for a credit card debt consolidation loan. 

The application process for a credit card debt consolidation loan begins with comparison-shopping.  It is always a good idea for borrowers to research various lenders to find the best deal.  Since the credit card debt consolidation companies do benefit financially from servicing these loans, there can be some pretty steep competition for new business.  The highly competitive nature between these companies will often result in savings for the borrower.

Once a consolidation lender has been chosen, the physical application must be completed.  The information that the average credit card debt consolidation loan application requires will include the borrower’s name, current address, driver’s license number, and social security number.  The social security number will be used to obtain the borrower’s credit report. 

A credit report is the most utilized tool in the assessment of a borrower’s ability to repay the loan, thus having good credit is very important.  Each lender evaluates credit differently.  Some lenders find it possible to assess a borrower’s financial situation by reviewing the credit report alone.  Others need more substantial proof, such as information from W-2 forms from the previous tax year or copies of bank statements and the most recent pay stubs.   Retired people may need to provide information regarding their pension checks or other forms of income.

A person’s assets may be reviewed to determine if there is enough collateral to justify approving the credit card debt consolidation loan.  Also, the borrower’s debt-to-income ratio must be within the consolidation company’s guidelines.  Almost every facet of a potential borrower’s financial situation can be reviewed when that person is seeking a credit card debt consolidation loan.  

Once the application is completed, the company will determine if the credit card debt consolidation loan will be approved.  The process of approval can take anywhere from a few minutes to a few days.  However, it is important to understand the facts regarding credit card debt consolidation loans before entering into the application process.

With a credit card debt consolidation loan, the borrower’s various credit cards are combined into one consolidated loan.   The borrower makes the payment for that loan to the credit card debt consolidation company each month, which in turn, pays the various credit card debts.  Consolidating credit card debt will not reduce the borrower’s total principal balance.  The principle amounts due will still be owed to the creditors until they are fully repaid.  However, sometimes the consolidation company will negotiate with a creditor and get them to agree on a lower rate of interest.  This is an act that is rarely successful when a borrower contacts the creditor himself.  A lower interest rate could potentially save the borrower hundreds of dollars. 

Being approved for a credit card debt consolidation loan does not mean that the borrower’s debts will be paid off quickly.  The credit card consolidation process usually takes around 5 years to complete.  This length of time may be longer than the borrower prefers, but in most cases, a credit card debt consolidation loan may still be the best option.  Without it, the borrower may continue to make minimum payments on his high-interest credit cards without an end in sight.  At least with a credit card debt consolidation loan, there is a set date on which all credit card debt will be eliminated.  The borrower should also notice his balance reducing dramatically each month, which is encouraging as well.  The borrower’s financial problems may not disappear overnight, but at least there is now a solution in place to offer some real relief to the borrower.

Credit plays a major role in our lives today.  Having a good credit rating is now crucial to getting accepted for housing, credit cards, auto loans, and nearly all other types of consumer loans.  With that fact in mind, a large percentage of credit card holders are still careless about paying their monthly debt obligations on time or paying off their loans altogether.  The result is an escalating amount of credit card debt among Americans and an increased demand for credit card debt settlement professionals as a solution to the problem. 

Credit card holders who continually fail to meet their credit card obligations are forced to explore various debt consolidation and debt relief options.  Credit card debt settlement programs have become a popular remedy to help reduce the amount owed and eliminate debt altogether.  Credit card debt settlement generally involves negotiation between a debtor and a creditor and results in an agreement as to how the debtor will repay his or her credit card debt.  Once the debtor proves that he or she cannot meet his or her debt obligations, the credit card debt settlement professional will help reduce the financial burden on the debtor by decreasing the amount to be paid to satisfy the debt.  Although credit card debt settlement results in discounted terms on your loan, it is a solution that is extremely detrimental to your credit score.  One should only resort to credit card debt settlement in very severe situations or to avoid the alternative option of filing for bankruptcy.

Collection agencies generally authorize credit card debt settlements to debtors when they have reason to believe that discounted payment terms on the debt will be of better interest to them that receiving no payment whatsoever from debtors forced to file for bankruptcy.  Although individuals can go about the debt settlement process on their own, it is recommended to work side by side with a debt settlement professional to receive better results.  Debt settlement professionals are familiar with the right procedures and related laws and, therefore, will be more effective at negotiating with creditors to get reasonable repayment terms for their clients.  Debt settlement agencies can generally get as much as 50% of the debt wiped out in the repayment agreement. Another important reason that we recommend working with a debt settlement professional is to prevent fraudulent activities.  Creditors may attempt to mislead debtors by providing wrong information and so working with a debt settlement professional will ensure that the right procedures are taken and legal boundaries are respected.       The credit card debt settlement process usually takes anywhere from three to nine months before your debt can be settled with new repayment terms.  Terms and conditions also vary by state and type of debt, especially relating to the amount of time that needs to pass before your outstanding debt can be wiped off of your credit record.  Seven years is the average amount of time that needs to pass before your debt can be wiped off your credit report.  Be sure to check the statue of limitations applicable in your state to find out how long the repayment period is before a debt is classified as an uncollectible debt.  Finally, keep in mind that credit card debt settlement has a very negative effect on your credit score and it can take seven or more years to get your credit score back up to an acceptable level.