Ways to Consolidate Credit Card Debt

With the economy seeing so many people struggling to make ends meet, it is quite common that people are relying heavily on credit cards and loans to keep up with bills and the rising prices of utilities, groceries, etc.
While this may fix the problem, unfortunately it can also end up leading to someone owing quite a bit of money that can quickly become hard to handle.
Going back to school to earn a business degree may help find a position or even start your own business, but with jobs so few and far between and business folding each day, there is no guarantee that it will help. Business Schools can help connect you with accredited business programs.
Some may consider bankruptcy as a way to erase this debt. However, it can mess up your credit and make it difficult to get back in good financial standing.
A great way to help make your monthly payments manageable is to consider consolidating your credit card debt.

What is Consolidation?

When you consolidate your credit card debt you are taking the balance from each card, putting it together, and creating one monthly payment that people usually find much easier to handle.
There are several ways to consolidate your credit card debt. The option you choose depends on your personal preference.

Personal Debt Consolidation Loans

One of the most utilized options is that of the personal debt consolidation loan.
A popular loan choice is a home equity loan. When you take out a home equity loan you are borrowing money against what your house is worth. This basically means that you are using your house as collateral.
Speaking of using your home, if rates are lowering than they were when you purchased the home, you can utilize what is referred to as a cash-out refinance, meaning you can refinance your mortgage loan and receive a portion of the value to use towards your bill.
If you are uncomfortable using your home as collateral for your loan, you can speak to someone at your credit union or bank about getting a personal loan. If you plan to utilize a personal loan from your financial institution it is important that the interest rate offered is less than what you are currently paying on your debts or you can actually end up paying more that you already do.

More Options

Should you decide that a personal loan is not for you, you can consider:

• Borrowing money from your current bank accounts, stocks, or retirement funds.

• Borrow money from a friend or family member.

• Transfer your balance to a new credit card with a lower interest rate.

• Contact a company that specializes in debt consolidation to see what options are available for you.

You may even decide that earning your MBA in order to further yourself in the business world and earn more money to naturally pay off your debt is the best choice.

Source: My Two Dollars

Valerie Mack is a financial guru with experience in personal finance and savings. She has partnered with Article Writing Services to bring sites, like Business Schools, quality financial content. You can see more of her work at Online MBA.com.

While choosing a Credit Counselor, points to be remembered

According to the new laws of bankruptcy you need to do credit counseling. But here is a point most of the credit counselors are scamming & they are charging high fees.
So, it is very important to choose your credit counselor carefully. Few tips are below....

1. Appoint a personal counselor. Try to avoid those counselor who are providing services through mail or any other medium.

2. Look into their fees. Most of the counseling companies are charging high rate & this will partially increase the total debts of yours. Take the set up before signing up any deed. Their charges, limitations, feedback from their other clients etc.

3. Need to verify the authenticity of the counselor whether all of his certificate are valid or not. Apart from this the counselor do have the licenses in your respective state or not that also you need to check.

4. Your privacy is important. In this financial industry privacy is one of the most impostant factor. So, make sure your counselor are able to maintain your financial privacy or not.

5. Don't go for debt management companies. The reason behind is they will charge a huge amount & this is not mandatory in new bankruptcy laws.

If this points you will keep in your mind you will probably get a best credit counseling service in bankruptcy.