ALESSANDRO

“Credit Card Debt Consolidation” - Anyone who has read any newspaper articles on ‘Credit card debt’ would already know what credit card debt consolidation is. However, just for the benefit of others, credit card debt consolidation, in simple terms, is the process of consolidating debt which you hold on various high APR credit cards onto just one low APR credit card. Thus, the main benefit of credit card debt consolidation is realized in terms of APR reduction (and hence reduction in credit card debt growth rate). This is touted as the most important benefit (and sometimes the sole benefit) from credit card debt consolidation.

However, credit card debt consolidation comes with few more benefits as well. This credit card debt consolidation benefit is not as discussed as others. However, one benefit of credit card debt consolidation (from multiple to single credit card) is the fact that you need to track and manage a lesser number of credit cards.

The credit card debt consolidation exercise might bring you some more benefits in terms of rebates, discounts and reward points (especially if you move to a co-branded card as part of credit card debt consolidation)

Negotiate A Lower Monthly Payment- Many consumers would prefer to make their minimum payment yet find they are unable to afford that payment in the current economic climate. Acknowledging this fact, some creditors are willing to negotiate a smaller minimum payment that consumers can better afford. Call your creditor and ask if your payment can be lowered to help keep up your end of the financial obligation.

Only Those That Qualify Need Apply- Financial hardship programs are designed with consumers who are experiencing a real financial hardship in mind. If you are able to make your credit card payments and are simply looking for a way to reduce your payments, this program is not for you. In fact, card holders who have the assets or resources to make their payments in a timely manner should avoid trying to utilize this program. If you are “caught” you will find negative actions taken on your account. Read the rest of this entry »