Consolidating results

There are alternative loan possibilities such as home equity loans or personal loans, but neither helps if you can’t improve the interest rate you’re paying or the repayment period is so long it doesn’t make sense.

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The first step toward making debt consolidation work is calculating the total amount you pay for credit cards every month and the average interest paid on those cards.

That provides a baseline number for comparison purposes. For many people, there is enough left to handle their debt if they organize their budget better and get motivated to pay down debt.

The agency may also get the card companies to waive late fees or over-the-limit fees. Debt management programs usually take 3-5 years to eliminate debt.

If you miss a payment, they can revoke whatever concessions were made on your interest rate and monthly payment.

Debt consolidation is a sensible solution for consumers overwhelmed by credit card debt. Consolidation cuts costs by lowering the interest rate on debts and reducing monthly payments.

Debt consolidation is a financial strategy, merging multiple bills into a single debt that is paid off by a loan or through a management program.The chase to catch up with your bills will never end.Putting the credit card away would be a first step, but not the only one you need to consider before deciding that debt consolidation is your financial savior.Add the bills and determine how much you can afford to pay each month on them.Your goal should be to eliminate debt in a 3-to-5 year window.If you don’t plan to change your spending habits – i.e.

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  1. Even though it’s free, signing up is always a hassle.

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