How to Consolidate Your Credit Card Debt

If you are one that acknowledges their debt and do not see bankruptcy as an option, consolidating your credit card debt can be the answer. In my second year of my credit card debt being consolidated I’ve found a new found freedom. Instead of paying out to 7 credit cards, now everything goes to one monthly payment.

Instructions

Difficulty: Moderately Challenging

Things You’ll Need:

• patience
• calculator
• pen and paper/ spreadsheets

1. 1. On a sheet of paper create the following columns:
   - Name of creditor
   - Due date
   - Minimum $ payment due
   - Interest rate %
   - Total balance due
2. 2. Put together what your income and subtract that from all your expenses. You will need to have those figures on hand when preparing to consolidate.
3. 3. Research online the various non profit debt consolidation programs. Google nonprofit debt consolidation. I would choose one that does not charge you; they get their money from the creditors themselves. There are some that ask for a monthly fee to cover their costs. I myself used www.careonecredit.com I allow them to deduct $11.00 monthly to keep track of my credit card debt and make sure my creditors are paid on time. Some of my 19.99 % interest rates were lowered to 9.9% and it will remain at 9.0% until my debt is fully paid.
4. 4. When you sign up for a consolidation program and automatic debit is set up with your bank account. Based on you creditor spread sheet and the due dates, figure out what is the best date that you will be able to cover your monthly debt repayment. For some people with a consistent paycheck it may be a little bit after the 1st or 15th of the month.
5. 5. Depending on how much debt you have will depend on how long your payments will be. I found that my credit score went up from 680 to 750 within a year of being a part of the consolidation program. Because of my consistent payments it allowed my score to go up.
6. 6. When you total the monthly minimum debt repayments you will find that by consolidating your month debt repayment will be 20% less than what you would be paying without being in the consolidation program.
7. 7. In order for the plan to work you much be consistent. Any late payments will jeopardize your payment schedule.

Tips & Warnings

• When doing this plan you must commit to pay on time and to not open new credit card