Should you get Credit Card Debt Consolidation Help from Outside or is DIY Possible?

It happens to just about anyone these days - no matter how regular a life they live. They think they're managing their finances just fine until one day, they realize that they have $20,000 in credit card debt and no way to make even the minimum payments. When things get rather out of hand, your credit card company will usually schedule for you a free debt counseling session where they run all your options by you. Let's talk about one of the more popular areas of advice they offer you - on credit card debt consolidation help.

Let's start with what consolidation actually is. Most people who run themselves into debt do so not on one credit card but on multiple ones - usually more than five. Paying several minimum payments each month can actually strain on your finances. Club them all into one single balance, and the single combined minimum payment that you make will tend to be far lower than what several minimum pavements could ever be. But that isn't the only advantage of going down the consolidation path. Usually, you can arrange things so that you are charged a lower interest rate as well. Once you choose credit card consolidation, your creditors will find some satisfaction in how you’re obviously doing the right thing and not only will they stop making harassing phone calls, they'll stop charging you late fees and over-limit charges as well. All you need to do is to pay the consolidation company their monthly payments and all the trouble stops.

So should you get credit card debt consolidation help from outside or can you do it on your own? Considering how seeking the services of a consolidation company will cost something, you could seriously consider consolidating your credit card debt on your own. You're probably already familiar with this - you just need to transfer all the balances you have in your high interest cards to whatever card has the lowest interest. Once you’ve transferred the balances off the expensive cards, you still need to hang on to them; because if you close them all, your credit report wouldn't like that. If you want, you can go and apply for a new credit card that's built for this kind of consolidation. They charge you really low interest rates.

You could also handle things yourself without external credit card debt consolidation help by applying for a credit consolidation loan at the bank and taking the money in to pay all your credit cards down right away. But you need to be sure that you're applying for a credit consolidation loan and not a personal loan - because making that mistake would run you into the poor house in a hurry.

If you find that all of these are too hands-on for you, you really could find credit card debt consolidation help with a company that specializes in this. Whatever company you end up choosing, you probably want to check it out with the BBB first to make sure that they are completely legitimate and check out online testimonials well.

Debt Counseling For Your Future

Some people wallow in debt for a long time and then need the help of an outside source to get things turned around. Some people have a problem but find their way out on their own. Perfect credit is very rare, but a poor rating is going to hinder your life in many different ways. Bad credit can cost you car or home loans, personal loans, and even jobs. If you need help, or you have helped yourself, you still want to make sure you don't repeat your past mistakes. This is when debt counseling may be a good idea.

Those that got into debt because of things like medical conditions or a personal tragedy may not need debt counseling, but it couldn't hurt. Everyone could use some guidance. We learn to read, write, do math, and even how to cook a batch of brownies in school, but most schools do not teach how to take care of your personal finances. There are also many parents that keep money issues silent in the presence of children, so when they are on their own, they have no idea what they are doing. If there were debt counseling in high school, fewer people would be where they are today in regards to debt.

If you have gotten into trouble with debt because of overspending with credit cards or other loans that you can not pay back, debt counseling is definitely something you should look into. You can learn new habits to save for those items you want without slapping down a card knowing full well you may never pay it off. It can be hard to overcome these habits, but if you can learn why you make bad choices, you can try to make better ones in the future. Some who go through debt relief end up back in debt within five years. Debt counseling can help change that trend.

Do not confuse debt counseling and debt relief. They are usually two different things. Debt relief is when people work with your creditors to get your debt paid off, and some even offer loans to pay it off, and then you pay them off. Some are for profit and some are non-profit. Debt counseling, on the other hand, should be just about teaching you how to manage your money so that your debt problems do not get worse, or so that you can remain debt free after you have gone through debt relief programs. Some companies offer both.

Sometimes, debt counseling is called consumer credit counseling or any other number of things. Some programs require you to pay and some are free for some people. The best thing you can do is to call around and see what you can come up with. Look online for recommendations for programs that really work and which are not the best. Also check with the Better Business Bureau to be sure a company is in good standing, though all problems are not always reported where you can find them. Most companies just want to help, so take it when you need it and you'll see a great improvement in your life before you know it.

Managing Credit Card Debt

Before you can figure out what to do about managing credit card debt, you have to figure out how you got into trouble in the first place. Though there are some that simply overspend, chances are good you had a different sort of problem. If it is overspending that you are doing, you have to learn to cut back or you are never going to get out of debt. If you can learn to live within your means and also that charging is not always the best option, you can get out of debt. For others, the answers are not always that easy, but you can find your way out and prepare for the future with a little work.

Some people go into debt and have problems specifically managing credit card debt because something else in live came up that was unavoidable. For many people, these things are medical bills. Even those with decent insurance policies can not keep up with co-pays and a high delectable when a major medical issue occurs. When this happens, your credit card payments can fall by the wayside. You have to pay your medical bills, but you do still have to pay your credit card debts. See if you can make minimum payments just long enough to get your medical bills paid off. You will have to pay more than the minimum or the debt will never go away, but doing it for a short time won't hurt too much if you have no choice.

Other people have trouble managing credit card debt because they had an unexpected expense. This could be something like having to buy a different vehicle, an unexpected move, or perhaps a few exceptionally high utility bills a few months in a row. This is enough to throw someone off who has to live paycheck to paycheck. You may also have to help out one of your children or a friend in need. If these things happen to you, do your best to pay at least some of your monthly payments on your cards so that you do not get too far behind.

For some folks, there is no one thing that seems to be the cause of credit card debt problems. It can be a chain of small things with one small event tipping the scales. It can be hard to live without much, and only finding a way to make large purchases by using a credit card. The problem with cards are the interest rates, which can double and trip with one late payment. Making the minimum, as stated above, is not the best idea for managing credit card debt, but it saves you from a higher interest rate. You can't pay down your debt that way, but it can save you from higher bills in the future if that is all that you can muster.

Everyone has the potential to stumble with financial issues once in a while. The key is to not ignore the problem, which some people do. Managing credit card debt can mean nothing more than trying to do something to fix things. Not acting will leave you with a huge mess that can affect your life for years and years to come. As long as you do something you may be okay. At the worst, you can call for debt consolidation help. There is always someone willing to help you as long as you want to help yourself.