Get Your Credit Card Payments Under Control

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Why bad credit is prevalent and steps you can take
Many "experts" blame the epedemic of credit problems in current society on factors such as lack of stable permanent employment, relegation of importance of marriage and the family unit, inadequate healthcare and insurance provision and failing government support for established industry. However there have always been redundancies, marriage break ups, unexpected bills, health problems a... Read debt consolidation article



Why bad credit is prevalent and steps you can take
Many "experts" blame the epedemic of credit problems in current society on factors such as lack of stable permanent employment, relegation of importance of marriage and the family unit, inadequate healthcare and insurance provision and failing government support for established industry. However there have always been redundancies, marriage break ups, unexpected bills, health problems a... Read debt consolidation article



Get Your Credit Card Payments Under Control
Credit cards can be a nice convenience but they can also get you into a lot of trouble. If you have charged your cards up to the limit and are now having a hard time paying the bills you are not alone. Statistics show that the average credit card debt for each household in the U.S. is $4,800 per month. Also, there were 1.3 million credit card holders declaring bankruptcy in the year 2003.

There are a couple of things you can do to help yourself get out of debt. The first thing, of course, is to stop using your credit cards! If you can't control your spending, then cut them up or put them away somewhere where they are not easy to get to. Of course, it is a good idea to carry one with you in case of emergency, but if that means you will use it to ruin your credit it may not be worth it!

One step you can take to pay off your credit card debt is to practice what is called debt stacking. You must be very diligent in this, but it is a good alternative for someone who is not eligible for a debt consolidation loan.

With debt stacking, you first create a list of all your monthly credit card debts and order them from smallest payment to largest. Pay the minimum on all these debts and apply any extra towards the smallest payment. When that card is payed off, apply the amount you were paying on that to the next smallest debt.

For example, say you're making $75 payments to a small debt. When the debt is cleared add the $75 to the next debt on your list. If the next debt had a minimum payment of $100, you will now pay $175 until it is paid off. When that one is finished, take the $175 and add it to the next payment and so on.

Another way to get escalating credit debt back in control is credit card debt consolidation. This means taking all your credit card debt consolidation is taking all your credit card payments and consolidating them into one monthly payment. This way, you don't have to worry about managing the payments individually. Aside from this advantage, it may also provide you with the following additional benefits:

- Reduction in interest payments
- Less late and overtime fees
- Reduced monthly payments
- Pay your cards off faster
- Improve your credit
- Save more money in the long run

There are two ways to attack credit card debt consolidation. One way is to use a Credit Card Counseling firm. They assist consumers by consolidating all their monthly payments into one single payment and then dispersing this to the creditors on behalf of the consumers.

The other way is through a home equity loan or other secured loan. This is done by exchanging an unsecured debt (such as credit card debt) for a secured debt (a debt backed by specific assets such as real estate).

Neither one of these solutions will erase your debt without you having to work at it. You will still have a long road to pay off the debt you have accumulated but with a set plan it will make paying off that debt easier as well as establish more responsible use of credit cards for your future.

Find out how to repair your credit with this free credit repair report.

Lee Dobbins is a freelance writer and enjoys writing about many topics including debt and credit repair.

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Online Debt Consolidation Applications

Debt consolidation is a wise choice for people looking to reduce or eliminate their debt. Because of high interest rates, reducing debt is almost impossible. Getting a higher paying job may help. However, there is an easier solution for eliminating debt. Debt consolidation lumps all your debts into one loan. Helping you pay off debts quicker.

Debt Consolidation Loans Equals Lower Interest Rate

Banks and financial institutions that offer personal debt consolidation loans offer great rates for people with good credit. The average credit card interest rate ranges from 14% to 25% - sometimes higher. Because debt consolidation loans have a much lower rate, you will receive huge savings. For example, instead of paying $300 a month for credit cards, your consolidated loan may be $200 a month.

Debt consolidation loans must be secured by a piece of property. This could include a car, boat, or home. Home equity loans are ideal for those looking to consolidate their credit card and consumer debts into one payment. In addition to debt consolidation, home equity loans are perfect for home improvements, paying for college, or taking a dream vacation.

Using Home Equity Loans to Consolidate Credit Card Debt

Home equity loans are based on your home's equity. If you owe $100,000 on a $175,000 mortgage loan, your home's equity is $75,000. Thus, you may obtain a home equity loan for up to $75,000. Use this money to consolidate debt. However, weigh the pros and cons before obtaining a loan. Because the home equity loan is secured by your home, if you refuse to pay the loan, the lender may foreclose your property.

Applying for Debt Consolidation Loans Online

Completing a debt consolidation loan application is simple. For convenience, consider submitting an online application. Various lenders offer loans. Furthermore, there are lenders that offer loans to individuals with poor credit. In order to get the best rate on your debt consolidation loan, compare rates from different lenders.

Contact your current mortgage company. If you have good credit, the lender may be eager to give you a loan. Getting a quote request from a loan broker is also beneficial. These individuals do all the legwork for you. After a loan broker receives your online application, within minutes they will email you a list of multiple offers. Compare and contrast the rates and terms, and then choose the most attractive loan package.

Here are our Recommended Debt Consolidation Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


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1. Why bad credit is prevalent and steps you can take
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5. How to retire debt free
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10. Credit repair - How to avoid the downward spiral of credit

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Get Your Credit Card Payments Under Control
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