Got credit card debt? You may be paying way too much every month in interest rates and fees simply because you're not able to pay it off in time. One of the warning signs is simply not being able to completely pay off your credit card. Another warning sign is struggling to pay most of it off every few months. The clearest warning sign is not being able to meet the minimum monthly payment required by the credit card!
The benefits to consolidating your college loan debt are wide ranging. The first thing you may notice is how much more organized it will make you feel. By consolidating your college loan debt into one payment, you will only be getting one bill. You no longer will have to worry about missing a payment because it got lost in the sea of paperwork you get flooded with in the mail. Since you will only have one bill department to deal with, you have a better chance of arranging a more flexible payment schedule, which can help ensure you will always make your payment on time thereby not incurring any late fees. Another bonus to consolidating your college loan debt is that you can lock in a fixed interest rate, which will reduce your monthly payment. This interest rate will save you thousands each year.
Likewise, if you are having issues with a bunch of different accounts and you find yourself unable to manage them all, then you would be a good candidate for help to get out of debt fast. This will give you one thing to focus on and that makes seeing the finish line much easier.
This means keeping up your own job skills, whether or not you work at home. Having savings. Talking about how potential problems will be handled. Not panicking if something does happen.
The first thing that you need to do is get all of your credit card in order and get all the account info for each card: contact number, account number, amount owed. By seeing exactly what you can afford to put on each card you will have a starting point to go with for paying off all of your cards.
What would you say if I told you that the average minimum monthly credit card payment is a whopping 8.00 (Kiplinger's Personal Finance Oct 2006)? Are you chuckling because you pay more? We're not talking about a mortgage here; folks were talking about monthly credit card balances.
At the very least, you should be paying off whatever you spend on the card at the end of the month. This way, you know that whatever happens, your credit card debt is not increasing. Better still, leave your card at home when you go shopping and use good old cash to make your purchases.
Default Provisions - If you more than one card and if you are unable to meet deadlines on even one of them, the issuing company may levy an excessive interest to the tune of 20% and you could end up paying an awesome interest in excess of 35%.
Finally, make a debt repayment plan for yourself, and write it down. If your plan is to repay 10% of your debt each month, set targets, and then at the end of the month review your performance to see if you were successful. Change your plan if necessary until you reach your goal.
No matter which type of loan you need it is wise to begin repaying your debts prior to applying. This shows a lender that you are serious about getting out of debt and rebuilding your bad credit to good standards. Make sure that you have been consistently making your monthly payments or have gone through some consumer credit counseling. Lenders look at your efforts to pay off your debt when considering you for a bad credit debt consolidation loan of any kind.
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