Credit card consolidation can be managed better with these helpful tips and further help manage your debt better.
1) Make a step by step plan of your budget.
Knowing what you spend your money on each month will ensure that you head towards the goal of getting out of debt. Until you do this you will never know what your debt really is.Each time you spend money on something write it down. Do this for a month and you should have a good ideal of where your money is going each month. This way you should be able to cut down on the items that you really don’t need each month.
Don’t just write down the big items you purchase but everything that you spend money on. This will give you a true expense list for your money outlay.When you know what you are buying that you don’t really need then you will be able to stop those and start getting ahead in your debt.The money you save by not spending on unnecessary items will enable you to pay off your debts. The sooner you do this the sooner the burden of debt will be lifted.
2) A complete list of creditors is needed so that you know who you are paying money to each month and how much. Write down the interest rates and the least amount you can pay to each one. This will give you a true outlay of your money each month.
3) When you have your budget listed and all the money you owe each month to your creditors then and only then will you know how much money you have left at the end of the month. This will show you the extra money you can apply to your debt to pay it down each month.While you are going through this task be sure and continue to make your minimum payments each month. Never stop making payments no matter what.
4) If your credit is good with the companies you are dealing with maybe they can help you out by lowering your interest rates. Call them up and ask if they can give you a special rate. Some will and some want but at least you asked. If they do then you are in business to help get your debt down sooner.
You will be able to reduce your debt with the lower interest rates sooner. This will help you to pay extra towards the balance and thereby pay off the debt sooner.To get a lower interest rate they may require you to move your debt to their credit card. This will be alright as long as the interest rate is low enough for you to benefit.Credit card consolidation may be achieved this way but not always. Be sure and check out all possibilities before you commit.
Get all the information on charges and the percentage that you will be paying in writing before you complete the deal. Also, confirm the monthly payment you will be making each month.Getting this information from those that you are working with will enable you to get the best deal before confirmation of the deal.An up front low interest rate is not always the best deal. Especially if it’s for a short period of time. You will need to work out the details on the overall savings on the rates they tell you about.
5) If you can’t get your credit card companies to go along with lowering your interest rates or help you to change your payments then you might have to really buckle down with your finances. Don’t go out and get a loan on your house to offset you debt. This will only get you into more debt.It doesn’t help you but it does your creditors. You will be protecting the credit card company and not yourself.
What ever you decide by all means get good advice before you jump into anything. Do your research well and it will pay off in the long run.There are many free places to get the information you need to make a wise decision. You don’t need to pay for this type of help.Your mission is to stop spending so that you can get out of debt soon.If you follow these tips you should be on your way to a debt free life. It will take work and dedication from you and your family to accomplish this. It want happen overnight so don’t give up.