Breathe a Sigh of Relief with Credit Card Debt Consolidation

A Credit Article Contributed by Mark Mcclelland

Credit Card Debt Consolidation Can Be a Breathe of Fresh Air

Credit card debt consolidation is an excellent means of revitalizing your financial life, minimizing your monthly payments, and keeping more of your money where it belongs...in your back pocket.

For years now we've been suffering though the agonies of trying to pay off our credit card debts, but month after month, when we look at our credit card bills not only don't they go down, they tend to go up. Sound like your life in a nutshell? Well, it certainly does for a lot of people.

Apart from our love affair with plastic, one of the reasons that our bills continue to go up has to do with the interest rates we're being charged. It stands to reason that a larger interest rate is going to result in higher monthly payments...but it's also the case that those of us least able to pay get whacked with the highest interest rates, making it even less likely that we'll be able to pay our bills.

There's got to be a logical explanation in there somewhere, and it's sure to be related to the perceived "risk" we represent, but it seems to be more of a self fulfilling prophecy than anything else, and one that the credit card industry uses to it's advantage. If all you can afford to pay each month is the credit card's interest rate charge, you certainly aren't paying down the actual debt...and that's how they like it

How do you get off this merry-go-round? Well, first stop using your cards. Second, look into a good, reputable credit card debt consolidation program.

Hunting down That Credit Card Debt Consolidation Program

A debt consolidation program combines all your credit card bills into a single payment - at hopefully a lower interest rate. This means that rather than paying multiple credit card bills, each with a different interest rate each month, you only make a single payment. Credit card debt consolidation programs help you climb out of the pit of debt; they ease your monthly financial burden, and can also help revitalize your credit scores.

The best place to start looking for a good debt consolidation program is to look for companies that are accredited by the Association of Independent Consumer Credit Counseling Agencies, or the National Foundation for Credit Counseling. Your local (state) Consumer Credit Counseling Services company is accredited by these umbrella organizations. Then, take the time to understand all of the various services, programs, and educational benefits offered by the agency. Make sure that you also understand how they get paid, who pays them, and when.

And after you've decided on a specific agency, make sure that you keep accurate and complete records of all your interactions with them, including all phone calls. Even if you never have any problems with them, you might just want to call them periodically to check up on how your program is processing... just to make sure...

How Does a Debt Consolidation Loan Pay off My Credit Card Debt?

When you decide to employ the services of a debt consolidation agency, they work with both you and your various creditors to develop a debt repayment plan that everyone can live with. Oft-times they can negotiate lower interest rates with your creditors on your behalf, and might also be able to get your creditors to waive existing late fees and other charges.

Once the plan is established and agreed to, you'll make a single monthly payment to the consolidation agency, and they, in turn, will distribute your funds to your various creditors, in accordance with the plan, on your behalf. It's that simple.