Here are some great tips on credit card consolidation to help you manage your debts more efficiently.
1) Draw up a financial allowance. Yes I comprehend it is boring but you will never be in a position to get out of debt until you know exactly how much you earn and what you spend your cash on. As a way to get a real picture you ought to keep a spending diary for a month. Write down every cent that you spend. This is the only way you will be able to find those holes in your spending that must be plugged. It will also highlight areas that you could cut down on in order to release money to pay towards reducing the money you owe.
2) You ought to make an index of all of your creditors stating their name, your bank account number, the total amount you owe, the least monthly repayment and the monthly interest you currently pay.
3) Now you must your available funds and the checklist of your financial situation, you can see how much extra a month are able to afford to start paying to eradicate your debt. When you are completing this exercise you ought to keep your least monthly payments going.
4) If your accounts are up to date and you have an excellent record with these credit card businesses, ring them up and ask them if they are able to do you a special deal on the interest rate you are paying. You could be pleasantly astonished when they say yes. The low the monthly interest, the more of your money will go to reducing your finances. They might expect you to move your other debts to their card in return for a good deal. This may be the best way to accomplish credit card consolidation but don’t start anything just yet.
Ask them to affirmed the deal in writing making sure that they confirm the costs and the percentage minimum monthly repayment you may be expected to make. You can then review these offers and pick the best one for you. Don’t always opt for the lowest interest. 0% over 6 months is great but 2% over 24 months is better if your financial allowance has indicated this is how long it will take to clear the money you owe.
5) If your current creditors won’t help, don’t be tempted to take out a loan secured on your property to repay these debts. This is one of the last solutions you want to do as effectively you are giving your creditors more protective cover and yourself less. The best bet before you enter into any form of consolidation is to talk to a qualified advisor first. Don’t pay for this advice as plenty of charities will provide it for free. Remember you are on a mission to cut your spending as a way to get out of debt.