Cutting Credit Card Debt Payments in Half

by News Guy on June 22, 2013

For those who have ever needed help reducing their credit card debt, Consolidated Credit’s very own Elaine McPartland is here to go through some steps that can be taken.

Credit card debt payments have a tendency to cause issues for consumers. As revolving debts, the amount you are required to pay each month varies based on how much you owe in total. As a result, when you make too many charges in a given month, you drive your credit card bills up and end up with a surprise when the bill comes due. This can easily cause problems in your budget, because you need to allocate more of your income to cover debt payments. If you don’t reduce your debt load quickly, you can wind up in financial distress facing bankruptcy.

When money is already tight in your budget, it can be almost impossible to eliminate debt quickly on your own by making extra payments on your debts. When you can’t eliminate debt using traditional means, the only alternative is to look into options for debt relief. This is where debt consolidation comes into play.

Debt consolidation is a financial relief option where you roll multiple unsecured debts into a single monthly payment at the lowest interest rate possible. With a low interest rate, your debts don’t grow as fast with interest added even though you pay less in total each month. More of each payment you make goes to eliminating the principal debt instead of paying off interest added.

If you have good credit scores, you can qualify for debt consolidation options such as a personal debt consolidation loan or a credit card balance transfer. This allows you to consolidate debt on your own without a need for assistance. If you don’t have good credit scores, then you should contact a nonprofit credit counseling agency to request enrollment in a debt management program. Credit counseling agency statistics show that a debt management program can reduce your monthly credit card debt payments by up to 50% in the right financial circumstances.

Since every financial situation is different, any debt consolidation or debt relief option is going to work differently for different consumers. Always make sure to compare the projected payments on your debt solution to what you currently pay now and what you can afford to pay in your budget to make sure you are receiving the debt relief you need. Otherwise, you can end up using the wrong debt solution and actually make your financial issues worse. When in doubt, always consult with a financial professional before you decide which debt solution is right for you.

Like this Article? Sign up for our Newsletter

We respect your email privacy

Leave a Comment

This blog is kept spam free by WP-SpamFree.

Previous post:

Next post: