4 Important Tips On Credit Card Consolidation
4 Important Tips On Credit Card Consolidation Some tips on credit card consolidation are common sense. One tip that should go without saying is to not make a new agreement that you can�t pay. It does no good to consolidate your credit cards for a lower monthly payment if that payment is still too high. Here are some other important tips on credit card consolidation to help you make your decisions. TIP 1: Make sure the debt consolidation company or credit counseling company you�re working with is reputable. These companies are a dime a dozen all over the Internet. You can also find dozens of different such companies advertised on the television and radio. Just because you see the ad at a popular and reputable website, or see the ad on the television, doesn�t mean the company is a good one! Even rip-off companies need to advertise to draw in customers. Try to talk to someone who has used the company. Investigate them online and with the Better Business Bureau. TIP 2: If you�re using credit counseling or a debt consolidation company, really look at the terms of the agreement. This is one of the tips on credit card consolidation that can�t be stressed enough. Do the math yourself. Even if the company is a good one, you shouldn�t just take what they�re saying as gospel. Crunch the numbers and figure out just how much you�re saving. Sometimes what you find can be surprising. You may be about to sign an agreement that eases your burden today, but increases it tomorrow! If you�re getting a lower monthly payment, make sure that your interest rate is lower also. Otherwise your debt will accumulate at the same rate as before while you�re paying less. This might seem like an acceptable solution if your payments are out of control. But it will keep you in debt longer and making payments longer. If you�re having trouble with your debt now, think about how you�ll be adding to it in the future. How likely is it that making bigger payments in the future to pay off more debt won�t be a problem? Most good companies avoid this situation, but you should always make sure you�re not getting in deeper just in care. TIP 3: This is one of the tips on credit card consolidation for the do-it-yourselfer. You didn�t contact a service but instead decided to consolidate your cards yourself. Read the new card agreement carefully. If you think you might be forced to make a late payment even once, reconsider. Doing so can send your interest rate skyrocketing and you could end up in deeper debt than before. TIP 4: Once you�ve consolidated your credit cards, stop using the ones that have a zero balance. Use cash only and do your very best not to add any new credit debt. If you don�t do this, you�ll end up with the consolidation to pay plus new debts on other cards. Stop using credit cards is one of the best tips on credit card consolidation you can get.