Get Out Of Debt With These Debt Consolidation Options
Posted on | September 11, 2009 | 2 Comments
As a recovering debt addict, I know what it is like to be struggling under a mountain of debt. Fortunately, through a combination of increasing income and smart debt elimination techniques, I was able to pay off a massive amount of debt. One technique that I used to clear debt was credit card debt consolidation. Indeed, millions of consumers explore debt consolidation options each year.
Here are some of the main options for consolidating your credit card debt:
Transfer balances to a low interest credit card. These interest rates can run as low as 2.9% to 7.50% if you have very good credit. Even in our economy today, you are still probably getting some pretty good balance transfer offers. I expect that the number and type of offers will improve over the next few months. Beware of those balance transfer fees. Some are as high as 4% with no cap on the amount.
Use balance transfer checks. Credit card issuers still mail out balance transfer checks with their monthly statements. Many offer a low interest rate for the life of the loan. You still have to pay a balance transfer fee, so be careful.
Open a HELOC (Home equity line of credit). If you own your home, and still have equity left after the mortgage bubble burst, you can get a HELOC. It is not usually wise to make a habit of taking equity from an appreciating asset to pay for consumptive spending, but, in this economy, you have to do what you have to do.
Negotiate with your credit card company. Credit card companies are still reeling from the defaults over the past several months. You can try to use the current economic climate as leverage to negotiate lower interest rates by threatening to close the account and pay off the balance.
Remember, these credit card strategies are only available to consumers with good credit scores.
Consumers with bad debts or poor credit scores will have to explore other means to achieve their debt consolidation goals. Even if you have bad credit, it makes no sense to procrastinate and do nothing. As your credit debt begins to spiral out of control your efforts to consolidate your credit cards becomes more difficult.
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Tags: credit card debt elimination > debt elimination > debt elimination programs > eliminate credit card debt > eliminate debt > eliminate your credit card debt
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2 Responses to “Get Out Of Debt With These Debt Consolidation Options”
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May 27th, 2010 @ 11:19 pm
How do we begin to predict what the housing market will do? No offense, but everybody was wrong about it just a fewyears ago, so why do we think it will be better in the future? Just because housing is cheaper and mortgage rates are lower? Unemployment is still a serious problem. And, the debt the US seems to accumulate every day. I personally think waiting is the best option right now.
May 28th, 2010 @ 1:09 am
Why a Merchant Loan?…
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