As an increasing number of people are finding out, you have to be very careful when dealing with credit cards. One of the things that makes it so easy to need credit card debt help is they are so convenient and safe to use.
In many ways they are better than cash, especially if your purse or wallet is stolen. Also, there are many things that require the use of credit cards. In short, they are close to a necessity in today's economy.
However, all of their benefits come at a potential cost. Even the most careful consumers can quickly find themselves in trouble, due to no fault of their own. If you count yourself amongs this growing majority, there are several options you can use to get back on track.
Credit card companies know what they're doing. they know if they get you to switch a balance to them, they will make money from you. At the same time, they would rather have some of your money than none of it, so they often offer very attractive rates for balance transfers,.
This can be a good way to get your debt under control. however, it's very important that you check all of the terms and conditions for any balance transfers to make sure you will be getting a good deal once you are done paying off your balance. One thing they like to do is offer a low rate, but only for a few months.
Once this time is up, your rate will go up. Whatever the case may be, it's up to you to make sure. You may still get a better deal than your current cards offer, but the only way to know for sure is to calculate the numbers.
The prevailing attitude amongst most people is that debt consolidation loans are a quick and easy way to get credit card debt help. In some cases this may be true, but don't automatically assume it's true for you.
On the surface you may see one payment instead of many, a chance to repay several creditors at once, and a lower monthly payment. But if you dig deeper you may discover that those supposed benefits come at a bigger expense. You may have to pay more interest over the life of the loan, which will put you further behind.
Another common tactic is to give you a low monthly payment but to make the loan last longer, again, resulting in more money out of your pocket. You will have to look over all the terms of any consolidation loan to see if you can live with the terms. Whatever you decide, be sure you are making a well-informed decision.
Credit Counseling Agencies
These agencies are a good option if you are looking for credit card debt help. They will deal directly with your creditors to get better deals on the debt you owe.
The typical arrangement is that they will calculate the total monthly amount for these new terms (plus a nominal amount for their service), then you send them that total amount each month. Once they receive your payment, they will distribute it to your creditors as needed. Not only can this be more convenient, but you also avoid having to take out a new loan.