Credit Card Debt Elimination Secrets

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Debt Consolidation and Debt Management - Get Debt Relief
In Part 1, we discussed how debt management helps you learn how to get a handle on your finances. However, using debt consolidation and management together will provide you maximum financial results.

Once you have developed good skills for managing your debt, you need to learn some ways to reduce your monthly payments and financial stress. Here are six options for consolidating your deb... Read debt consolidation article



When Debt Collectors Cross the Line - Bogus Threats and Illegal Tactics
If you are behind on your bills and on the receiving end of collection phone calls, you will probably hear collectors make some very threatening statements. While most debt collection professionals try to stay within the boundaries defined by the Federal Fair Debt Collection Practices Act (FDCPA), many others cross the line on a regular basis. Last year, the Federal Trade Commission (www.ftc.gov) ... Read debt consolidation article



Credit Card Debt Elimination Secrets
How to Save Yourself from the Spiraling Effects of Credit Card Debt

Credit Card Debt Elimination and Credit Card Debt Reduction

Credit card debt is becoming a problem of mass proportions in North America. People are spending more than they earn and using their credit cards to pay for everything from furniture to food. Although it is easy enough to use a credit card for your purchases, the debt you incur can be very difficult to handle. There are, however, ways to take control of your credit card debt regardless of how much you owe. Your financial health can be protected, but first, you need to commit to a sound credit card debt elimination process that works.

To begin the process of credit card debt elimination, you need to compile a list of all your credit cards. Start by writing down each credit card including the balance, interest rate and the minimum payment percentage each month, which is generally 2 percent of your total balance. Next, look at your last statement and note the minimum payment.

Once you have completed this list, rearrange your credit cards so that the card with the highest interest rate is at the top and the card with the lowest interest rate is at the bottom. Now add up the required monthly minimum payment for each card.

At this point, it should be your goal to devise a way to pay more money towards your credit cards, over and above the total monthly minimum payments. To do this, you may need to commit yourself to a strict budget, but it will all be worth it once you see significant results in your credit card debt reduction.

Each month when you receive your credit card bills, you should pay the minimum balance on all of your cards, with the exception of the card with the highest interest rate. For this card, not only should you pay the minimum balance, but you should also contribute the extra money that you have set aside.

You should continue to do this until you have managed to pay off the card with the highest interest rate completely. Now, you should take the amount that you were contributing towards the paid off card and the minimum balance on the second highest interest rate card and put both payments towards paying off this new card. While you do this, continue to pay the minimum balance on each of your other credit cards. You continue this cycle until all of your credit cards have been paid off.

It may well take you a long period of time to pay off your entire debt. Any plan for credit card debt elimination takes time and commitment. Remember that as long as you are paying the card with the highest interest rate, the interest costs will stay low. Be patient throughout this process and stay committed to a healthy way of spending that does not threaten your financial security.

Mary Talbot is the content manager for Debt Consolidation Guides. She offers debt management solutions to help you get out of debt and stay that way.

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Student Loan Consolidation - Save Money

Consolidating Student Loans Can Boost your Credit Score

Most students take out numerous loans for college, each with its own interest rate and its own monthly amount. The plethora of different loan sources is a great benefit in terms of paying for college, but when it comes to credit rating, this long list of outstanding loans can put a serious damper on your overall score.

By consolidating student loans, your credit report will show one combined loan, usually with a much lower overall payment, which equates to a more favorable credit rating. By consolidating student loans, you most likely also benefit from a much lower payment, thus lowering your debt to income ratio.

Consolidating Student Loans Reduces Debt to Income Ratio and Increases Buying Power

Having a low debt to income ratio, or the monthly amount owed compared to the amount earned, makes an incredible impact on the amount of money you'll be able to borrow and afford for a first home or reliable transportation.

The total amount of household debt in the US last year was more than 100% of disposable income. Rising education costs have created a vicious cycle for today's graduating students. As your debt to income ratio rises, so do the interest rates of each new loan. Keeping this ratio low by reducing your monthly bills can literally save you tens of thousands of dollars over a lifetime.

Consolidating Student Loans Reduces Dependence on Credit Cards

Having lower bills in the years following college means less reliance on high interest credit cards and other loans. The average college student carries a whopping 6 credit cards with a total balance over $2100.

This means that the $100 credit card purchase for new work attire could cost more than $200 over the 12 months it takes to pay the full balance. Fortunately, smart financial planning, including consolidating education loans, can help students and young professionals live a life free of high interest debts.

By Consolidating Student Loans, You are Locked into Today's Low Fixed Rates

Just because interest rates are low today doesn't mean they will stay that way. In fact rates over the last several years are lower than they've ever been in recent history. It's amazing how much a small percentage point can save or cost on a college education bill over the course of a loan repayment.

The Federal Consolidation Loan allows you to lock into today's low interest rates when consolidating student loans. Consolidation loans usually have a longer repayment period and a lower monthly payment than is available on the underlying education loans.

By Consolidating Student Loans, you can Receive Additional Interest Rate Discounts

Companies that specialize in consolidating student loans like ScholarPoint.com offer additional consolidation benefits such as auto payments, and consecutive payments.

Auto Payments: Receive a reduction in your interest rate for making your payments automatically from your bank account when you consolidate your student loans.

Consecutive Payments: Some student loan consolidation companies give you the opportunity to reduce your repayment interest rate up to one full percentage point by simply making payments on time.

No Interest Deferral: Take advantage of the flexibility of student loans by deferring loans during qualified times. While enrolled in graduate school, serving in the military, or volunteering with the Peace Corps, you can not only defer payments, but stop interest from accruing as well.

Grace Period: Consolidating during your grace period allows you to lock in a rate that is often much lower than the standard repayment rate.

ScholarPoint Financial, Inc. is a national online consumer lending company specializing in student loans. We believe in combining state-of-the-art technology with world class service to help students and parents easily gain access to data, become informed, and enjoy the process of obtaining a college loan. Learn more about Student Loan Consolidation at http://www.scholarpoint.com


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Credit Card Debt Elimination Secrets
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