A Quick Credit Card Debt Consolidation – DIY Guide

If you are experiencing debt problems, then you are not unique. Statistics have shown that in our country on an average, people have eight credit cards and an average debt of $ 9340. An inflated rate of interest of 18-25% (mainly credit cards) is just one of the reasons attributed to why the debt has grown at an annual rate of 5%.

With the growth in debt problems throughout the country, there is also consistency as to the accelerated emergence of debt consolidation credit card services. These companies generally propose resolutions to help combat your debt problems with charging fees or without.

If you are careful enough, you can consider debt consolidation yourself and keep your rates by consolidating your debt repayment.

You should negotiate terms with your creditors and ask to reduce interest rates and late fees which usually are the biggest obstacle to absolve debts. With that accomplished, you have to create a budget and comply with diligence. You should review your tax status of the cases so that you can have more control over your income.

DIY Debt Consolidation

In general, the first reconcile debts include those bearing a higher interest rate. Once you take care of the debts, you'll notice a big difference in your monthly budget. And if you're looking to reduce the interest given to the creditors by covering less debt, a do it yourself debt consolidation could be a smart choice. Here are some steps to follow when considering debt consolidation.

Prioritize debts by organizing a list of your debts (with creditors) and the rank order of priority. Next calculate affordability by building a list of your regular income, including wages, any state benefits, child tax credit, child tax benefit, work tax credit, and so on. Then calculated how much you can spend a month on of all debts.

Once this is done it is time to contact your creditors. Choose whom to pay first by determining whether your creditors are still in control of the debt or if they've sold off your debt to a collection agency. If the creditor controls the debt, you can prevent further contact, if the statute of limitations expires. This can be done by sending a letter. If your debt is turned over to a collection agency, is better than forcing them to corroborate the claim before you start paying.

You should discuss the terms with creditors and ask to reduce rates, thus reducing the payment of inflated interest debts. Also, make sure that your total monthly debt payment does not exceed what you can afford. While you are purchasing a declining level, is able to negotiate waiving late fees.

If you have several credit cards with a low debt amount to each, you will be able to consolidate them doing a balance transfer. This is administered by transferring balances to different cards one with a lower rate of interest rate or 0%. Therefore, one could achieve a single payment instead of multiple payments on all cards and pay much less in interest. However, before committing a balance transfer, make sure to examine the conditions of the 0% APR card and check for a period of sustainable introduction. This is because if the introductory period is quite long, you will have enough time to pay the total levy rate of 0%.

When considering the DIY credit card debt consolidation, self-control is extremely important. Be accurate when formulating the budget and you'll soon will be going to live a debt free life once again.

Credit Card Debt: A Major Component Of Debt Negotiation

Let's sit down and understand the scale of this problem and how to work our way through it.

We can be sure that one out of five people reading this article had or is facing a debt problem. Citing the results published by the U.S. Congress report of the Joint Economic Committee in May 2009, is that up to March 2009, consumer debt in the U.S. touched $950 million and almost entirely consisted of credit card debt.

The other part of this report highlights, is even more alarming which is the fact that almost 14% of revenue generated by consumers in the U.S. was used to pay the debt in the last quarter of 2008. This probably would be more in some homes.

The job market becomes more difficult, the steady income would be a problem and agreed terms of payment become a problem in most households, which are struggling to stay afloat. For these households the debt negotiation definitely brings a little joy and relief.

The situation is grim in most of the population who are under the threat of bankruptcy due to mean increased pressure and a lower loan to repay. The most important of these loans are the loans from credit cards used to buy plants for the house thinking that the situation will improve in a few months and people would be able to return to normal again as soon as possible.

Since the return has not occurred as expected, more and more people are struggling to repay loans they had taken against their credit cards. This has been investigated and a legitimate method of negotiating credit card debt is expected to ensure that assistance given the financial capacity s can return the total amount of a different structure for reimbursement of loan, or at least pay part of loan to the principal amount which is recovered through a deferred plan.

The Process Of Negotiating Debt

Debt negotiation usually starts between the debtor and the negotiator in order to find the best possible way in which costs can be controlled and generate the surplus needed to pay a constant amount which is less than the original amount but in which the debtor cannot default.

Only after the conclusion of deliberations over the property the debtor can approach the credit card companies. There are plenty of options that can be explored during a negotiation of credit card debt, once the creditor is fully convinced of the seriousness of the situation and the authenticity of the debtor. Options include changing interest rates, changes in rates charged end and a total balance transfer at times. They are bargaining agencies that interact regularly with banks and thus enjoy a good relationship and trust with bank officials, so it might be able to get the debtor an extension of credit or a modified form loan repayment.

Therefore, it is imperative that you shed your inhibitions and pick up the phone (or a bank official) or a debt negotiator, so you can sit and have a chat face to face. What is worth remembering is that debt negotiation benefits both parties involved, but simply not that the bank may even want the money. Any form of negotiation of credit card debt need not be a brief, but respectful exchange of ideas and thoughts on the best possible way to guarantee payments. Finally, looking, this negotiation can be considered a win-win situation for both parties.

Managing Life After Bankruptcy And Credit Repair

Unfortunately many of us have become accustomed to the lifestyle that is almost dictated by debt, credit cards and loans, sometimes, leading to a vicious cycle of borrowing, from Peter to Paul as the saying goes. In the event that you have filed bankruptcy, and now are beginning your process of credit repair, if nothing else is taken into account the lessons you may have learned is the process that ultimately led to bankruptcy.

Do not fall into the same traps that you originally fell into, in terms of credit cards, loans, etc.. These tools are easily available and the companies that offer them are obviously there to make a profit, whether you or other customers can afford to make payments or not. They aim to offer higher rates and better services to lure you into taking more debt and return to a situation previously encountered in, before your credit repair efforts.

Strict discipline, commitment and motivation are part of the mentality of your credit repair efforts, as this will not happen immediately, but will take time and patience to reach your credit goals and clear your name. If you have any outstanding loans, rigorous management in terms of reimbursement must be respected, even if it means giving up some luxury or an element to meet your scheduled repayments. This surely will help you avoid getting back into bad habits of delayed account payments that might have led to the bankruptcy in the first place.

In addition, you will find that, because of your credit history is somewhat tarnished, many lenders will offer you a loan but with higher interest rates because of the inherent risk posed to these type of financial institutions. You should by no means take this personally, after all these people are running businesses. A better choice for you can be to get a secured loan, in which some kind of security is transferred to the bank as collateral, which in turn will offset the risk, and may consider reducing interest rates.

If you can avoid any of the lending practices for credit repair and even after that, then this would be ideal. Although many of us are aware that it is not so easy, especially with the rising cost of living, once you become accustomed to a certain standard of living of its difficult to change.

Payday Loans from A to Z

A payday loan is a cash advance for a short period of time. You can borrow up to $2000 and will have to pay the money back within 30 days maximum. All you need in order to be eligible for this type of loan is to be over the age of 18 with a bank account and a fixed source of income. Even people with bad credit can get this loan by applying for an online bad credit payday loan, and perhaps the biggest benefit is that the money you borrow will be transferred to your bank account in a short period of time, sometimes even within a few hours.

A fast payday loan is a great solution for anybody in need for quick cash to pay an unexpected bill or for any emergency, and doesn’t have the cash available.
A bit about the payday loan rate

Since payday loans are a quick way to get cash, the interest rate lenders offer you are high. Rates range between 10% – 30% depending on the amount you wish to borrow and the type of repayment plan you choose to go with. If you fail to pay the loan back on the deadline the interest you’re supposed to pay will be double for the following repayment period. For this reason, people who are in debt should avoid applying for a payday loan.

The fastest way to get a payday loan

The internet is a great source to find information and considered by financial experts as the best place to apply for any type of loan. By applying for a quick no fax payday loan you can enjoy a quick approval procedure hassle free. Before you sign the dotted line make sure to compare payday loan rates from at least 3 different companies. If you happen to come across a very low rate meaning lower than 15% call up the company making sure they are legit. If the rate is lower than 10% I would advise you to find a different lender.

Payday loans – Suitable For people With Bad Credit Ratings

Perhaps the biggest benefit of a payday loan is that anyone over 18 with a checking account and a fixed source of income can get instant approval. Even people with bad credit ratings should have no problem getting approved for a fast payday loan. The best place to get this type of loan is online. You can find online no fax payday loans which will guarantee the borrowed amount to be transferred to your bank account within one day or less.

Bad credit Payday Loan Rates

If you are thinking about applying for a bad credit payday loan, don’t think that you will be quoted higher rates than the standard payday loan. As a matter of fact every payday loan is also a bad credit payday loan because; the company that lends you the money does not care about your credit history. All they want to know is that you can pay back the money you borrowed on time.

When you compare payday loan quotes don’t be frightened by the high rates. The interest rates you will be paying will be from 10% to 30% depending on the amount you wish to borrow and the repayment plan you choose.

Payday loans for consolidating debt

It is recommended that people in debt avoid applying for payday loans to cover debt or make a payment. The act of getting a payday loan will only worsen the debt status and eventually turn into a huge burden. If you are looking for a debt consolidation loan a good idea would be applying for a personal loan. Repayment is much more flexible and longer and the interest rates are substantially lower. If you haven’t managed to obtain a personal loan consider contacting a debt counseling organization for professional help.

Faxless Payday Loans – Cash Advance Without the Paperwork

In order to get payday loans online without the hassle of faxing documents to the lender, apply for a no fax payday loan. You can get approved within only a few hours. Anyone who has a bank account and a fixed job can get a fast payday loan. People with bad credit that need a cash advance can get this type of loan since the approval process does not require checking the borrowers credit history.
Payday loan procedure in the past

Before the internet became a dominant marketing strategy, borrowers would contact lenders through phone or in person. After answering some question and understanding the terms and conditions, the borrower would then fill out an application form. He would then have to fax the form or stop by the lenders office to give him proof of his identity and the completed application form. If the borrower was approved, the total loan amount would be transferred into his personal bank account. This process was tiring, considering the relatively small payday loan amount.

The internet makes payday loans a lot easier

Thanks to the internet you can get approved for a payday loan in just a few hours without faxing any documents, and even better, benefiting from the standard payday loan rate. By comparing payday loan quotes from different online lenders you will find that the options are endless and working with a lender offering the best rate is recommended. Many lenders have a faxless approval procedure and in some cases you will only need to give the lender a post dated check. Make sure to give the lender a phone call, once you’ve filled out the form and read the agreement, just to be on the safe side of things.

Choosing the Best Payday Loan Lender

Payday loans are a great source for a short term low. However, the rates payday loan lenders offer are relatively high and you have to pay back the loan within 30 days depending on your repayment plan. For these reasons proper due diligence has to be done prior to signing an agreement with an online lender.

Comparing payday loan rates the right way

In order to benefit the most make sure to compare payday loan rates online. You can still get a fast payday loan by following the simple procedure of comparing between 3 – 5 quotes from different lenders. It is important when comparing quotes to try different comparison strategies meaning, fill out quote forms with different repayment plans and various loan amounts to get the best rate possible. Payday loan rates usually vary from 10% – 30%, naturally, the lower the rate the better.

The fastest way to get a payday loan

The internet is known to be the best place to get payday loans. By applying for a no fax required payday loan you may even be able to get the cash transferred to your bank account on the same day of approval. Another good thing about payday loans is that there is no credit check preformed. People with poor credit ratings can apply for a bad credit payday loan and get approved in a 2 – 3 days maximum. All you need to have is a bank account, a fixed work place with a monthly salary and to be over the age of 18.

Pay attention and read the payday loan agreement before making a final decision. If the rate offered is too low chances are you met a payday loan scammer.

7 Strategies That Will Help You Reduce Credit Card Debt

This article is intended to help anyone who has a debt problem and really wants to improve his/her credit rating or financial status. If you don’t think you are strong enough then reading on is a waste of your time right???

  • 1. Identify your debt problem

    It’s important you find the main problem that created your credit card debt. Try to cut that specific payment by at least 20%. If you don’t, your credit card debt will only worsen and in the future eliminating your credit card debt will be harder to achieve.

  • 2. Create a Budget and Goal

    Remember that the first thing that got you in debt was incorrect money management. You have to set a budget for yourself and work with it. Write down your personal goal, how much you’re allowed to spend monthly and in what period of time you will reach your goal. The most important thing with this strategy is reading it twice a day to yourself and sticking to your plan.

  • 3. Contact a debt management organization

    A lot of debt management services will give you free advice and may even help you manage your payments. You can find some non profitable organizations on our debt management service page.

  • 4. Control your spending habits

    reduce credit card debt

    This is not easy however, very efficient. Don’t use your credit card so often. Try to use cash and reduce your expenses. Don’t eat at expensive restaurants, use coupons to purchase food and in general buy only what you really need. This way of life doesn’t have to last forever I believe that in 2 months time you will see a big difference.

  • 5. Apply for a debt consolidation loan

    If you are in a large amount of debt consider consolidating your debt. A good way to start is by getting a personal loan. If you have an asset such like a home get a secured loan like a Guaranteed lowest cost Home Equity Loan.
    . Using this strategy you can consolidate your debt immediately and then just pay of the loan in time.

  • 6. Get a Lower APR credit card

    Lower APR cards allow you to transfer multiple card balances into one and eliminate the numerous monthly repayments you have been facing. Again, this is not free extra money. Compare all the transfer options available and understand all the terms and conditions. Failing everything, speak to your creditors and negotiate lower interest rates and payments.

  • 7. Pay More Than The Minimum Payment

    Creditors make their fortune thanks to the interest you pay. Therefore, the best solution is to pay more than the minimum payment this will reduce your credit card debt and you will also be paying less in the long run since your interest payments will be lower. If you have trouble paying more than the minimum monthly payment, find a second job.

At the end of the day the most important thing to remember is changing your way of life and spending habits. Following these easy steps will guarantee you a debt free status within 2 – 6 months depending on the amount of debt you are in. It maybe not the easiest thing to do but, think of the results at the end and the way you will feel.

A Consolidation Loan Is not Necessarily the Best Debt Solution

These days it seems like every person in debt first think about consolidating them. It is important to understand that a debt consolidation loan should be obtained when there isn’t any other way to eliminate or reduce debt. If your debt problem isn’t so bad, you might want to think about other solutions such as: proper debt management or debt negotiation.

Contacting Credit Counseling Organizations

A credit counselor can help you reduce debt, depending on the amount you owe. If your debt status is still manageable, meaning, if there is a way to pay off debt using your monthly income properly, a debt management company might be just the solution you need. Credit counseling organizations can also negotiate payments with your creditors. In fact, the process is fairly simple. Instead of your salary arriving in your bank account, it is transferred to the organizations account. They take care of making all the payments for you, charge a monthly fee and transfer the remaining money to you.

Doing it on your Own

If you have realized your problem and have decided to fix it, then good for you! It can be done. Will power, determination and proper money/debt management are vital when paying off debt. Make payments on time, cut expenses you don’t need. Shopping for fancy clothes on a monthly or weekly basis isn’t necessary. Use coupons to by food or other essential products.

Generally speaking, buy things you must for survival. You don’t have to live poorly, just calculated and you will find that in the course of time you will reduce debt, get used to a balanced way of living and find yourself in a better financial position.

Contacting a Debt Management Organization

Finding yourself in a debt problem can be very surprising and unexpected even though it has built itself in the course of several months or years. It may feel like waking up one day and just realizing everything you thought was ok, isn’t any more. This is a fact so don’t get upset and DON’T PANIC!

Who to Turn To?

When you realize you have a debt problem, contact a debt management organization. Chances are that the amount of debt you are in is still manageable and reducing credit card debt can be achieved in a cost efficient way.

Debt management organizations contact your creditors and try to negotiate interest rates and payment terms on your behalf. They actually do the calculation and financial work for you. You transfer them your salary and they manage the payments and reduce debt for a fee. Before signing the agreement they will let you know approximately how much will be left over for other expenses and design a monthly budget that you will be satisfied with.

People Build Up Debt by Trying To Get Out Of It

There are other proper solutions to get out of debt. A debt management service will not always accept your account. People who do not get proper advice but need to eliminate debt may find themselves doing the opposite. By taking a wrong course of action one might worsen his debt situation and credit score.

For example, a debt consolidation loan should be applied for only after there isn’t any other debt solution available. Further more, the interest rate that is quoted should be lower than the interest on the debt needed to be paid, otherwise it will be pure loss.