Free Credit Card Consolidation Does It Exist
Free Credit Card Consolidation Does It Exist When you see an ad for free credit card consolidation, does that mean that their service will help you consolidate your credit cards for absolutely nothing? How many businesses do you know of that provide their services without charging you? What the free usually means when you see an ad for free credit card consolidation is that your consultation is free. This doesn�t mean that just because an ad uses the word free to get your attention that they�re doing something wrong. If they offer a free consultation then it�s only natural for them to want to get that information in front of you. Offering part of their service for free is a great way to get business. If you�re in credit card debt, after all, and you see a credit card consolidation company that interests you, you�ll want to contact them. But if they charge you for a consultation, how likely are you to follow up? Most companies don�t just advertise credit card consolidation. They�re usually total debt consolidation services that can help you combine your credit card debt, your mortgage debt and other debts and pay them off by using a consolidation loan. If you get the loan, you pay off your individual creditors and then simply have to pay back the loan. You�ll make one payment per month instead of several. This simplifies things and makes it easier for you to manage and understand your debt. The interest on your one debt will be lower than the interest you were paying combined on your individual debts. Your one payment each month should be less than the total of the individual debts you had, too. This kind of arrangement can cost you more in the long run, though. You need to do the math and look at the terms very carefully. Free credit card consolidation is possible in this case because the company makes money from you on the interest associated with your loan. You could end up paying less per month and having a lower interest rate, but paying more in interest over the long run because the payments are stretched out so far. You may also have to pay fees to get the loan. Some companies don�t offer a loan, but instead negotiate with your creditors to lower payments and interests. Then you pay the credit counseling company who distributes the payments to your creditors. There�s generally a small monthly fee associated with that. Is it possible to get free credit card consolidation? There is if you do it yourself. You can transfer your multiple credit card balances to one card. Choose one with a low interest rate and look at the terms carefully. Then your payments will be consolidated on that one card. The risk in any of these methods is that you�ll use the cards you just paid off (or transferred balances from) and run your debt back up. To make free credit card consolidation really work, make your payments on time every time and stop using those zeroed out cards.