Set Yourself Free from Creditcard Debt

2007-03-08 10:33:40

( Financial )



Ever wonder why the words 'debt' and 'death' somehow sound alike? If you are one of those financial un-savvies who have been deeply troubled with creditcard debt, you certainly know why these two words could be interchanged.

A report by a public-policy organization found that some African-Americans are in grave creditcard debt to the point that almost half of their income goes to debt payments. This statistic could very well reflect other races as well.

That is why debit consolidation has become widely followed the world over. Debit consolidation works by certified credit counselors contacting and negotiating with all your creditors, to agree on a consolidated monthly payment based on your income and debt. Note however, that debit consolidation applies not to all debtors, since certain qualifications should be met. 0nce qualified, you send the debt consolidation agency a monthly payment, portioned out to each of your creditors, until your debts are paid off. Debt consolidators commonly arrange for reduced or waived interest and late fees from creditors.

But in order to be truly debt-free, you must be well-informed about money management. Even debit consolidation would not prove effective when appropriate money-handling skills are not in place. Learn to master the art of handling your money by knowing where it goes through having a printed budget. Budgets tell if you can afford that pricey black dress or that lavish vacation, even before the creditcard bill arrives.

You may also try balance transfers. Many creditcard providers actively look for those with creditcard debt willing to transfer their account (especially those in the red) by offering lower interest rates. Remember, however, to read the terms and conditions before completely agreeing. Make sure you're not moving your balances to low introductory rates, only to have the rates balloon again in a few months.


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