Jean's Money Blog

Live Debt Free With Me

Is It Wise to Consolidate Credit Card Debt?

Posted by on Feb 6, 2013

deep thought and wisdom

Being able to consolidate credit card debt is a great way to lower a consumer’s paperwork hassles and save money on interest charges.  When credit card debt is consolidated, a consumer takes several different credit cards with varying interest rates and payment terms and combines them into one.  This is usually done by paying off the balances on each card with a single payment every month.

When consumers consolidate credit card debt, they first thing that they notice is that the amount of paperwork they have to deal with on a monthly basis is greatly reduced.  With only one payment to make instead of dozens, the odds of a person missing one of their credit card payments go down dramatically – a lot can happen if you miss a credit card payment.  This makes budgeting for credit card payments a lot easier.  Instead of constantly tracking how much is owed on each card, all a consumer has to do is make a single payment every month.

The credit counselors who manage a consumer’s credit card debt consolidation are able to distribute the payment among the consumer’s different creditors.  In addition, these professionals are able to negotiate with credit card companies for the consumer.  Because they have had years of experience in the field, as well as good relationships with the credit card companies, they are often able to get consumers better interest rates and payment terms than they could otherwise obtain on their own.

Going through the process of credit card consolidation is fairly simple, and the results are great.  Furthermore, it is possible to pay less each month while making more progress on the debt than a person would have done otherwise.  Because a trained professional is handling the consolidation, it is possible to pay more on the principal of the loan, eventually eliminating the debt, than just making payments on the interest each month.