Credit card debt consolidation is one of the top things in minds of thousands of Americans- and no wonder, keeping the fact in mind that an average American pays $700 yearly for monetary expenses. If you’re one of them, who has chosen to consolidate their credit card debt, then below here are mentioned few things which you should know.
Your house equity cannot be of any help
If you’re thinking of taking up a house equity loan to get your credit card debt consolidated, then just stop. It is one of the biggest mistakes that you’ll do! Your house equity is your possession. Do not drag the possession for your credit card debt consolidation. But, why you shouldn’t? The answer is you have the chances to lose your home too!
If something bad happens, it goes on for quite some time. Well, this is what is said! And, you shouldn’t take anything for granted when you are in such a serious condition as credit card debt. there might be unforeseen events happening. If you miss few of your credit card payments, and your card gets blocked, then do not panic, you’ll eventually get back on your feet and eventually everything will be back to normal.
And, if by chance, you’ve consolidated your credit card debt by means of home equity loan. And another crisis occurs and you can’t make another few payments. Then neither do you get a ding on your credit score, nor do you hold the house any longer as you’ve already used it to consolidate your credit card debt.
Just keep one thing in mind- you don’t have to trade unsecured credit for secure credit. You may have to regret in the coming time!
Counseling is just for help
If you have made your decision about credit card debt consolidation and you’re looking forward for credit counseling, then make sure you choose the right company as majority of these companies make false promises and are a simple waste of money and time. Customers often get surprised when they find that the companies fail to deliver what they charge for!
Do not review the card just by looking at the introductory offer
Opting for a low interest card for credit card debt consolidation is perfect, but a low interest introductory card which rises in the next 6 month isn’t a good idea as you cannot clear the balance off before the introductory period terminates.
For those whose credit card debt is low and can pay off the amount in a period of 6 months, can go for a credit card with an intro offer starting with a low interest rate. However, if you owe a debt of thousand dollars, then you shouldn’t go for such a deal. For starting go for a 0% 6 month offer and then seek a 10% fixed rate interest after the 6 months.
While in reality, credit card debt is more like a never ending tunnel, debt consolidation can be a perfect idea to find an end to it. If you’re
really serious about your credit card debt consolidation, then visit here.