Pros And Cons Of Consolidation Credit Card Debt Loans
If you are carrying multiple credit cards, then you might have considered credit card debt consolidation. It is a process by which multiple credit card payments can be done by one single monthly payment. It certainly is a humongous saving in one’s resource in terms of time, effort and interest rates etc., Here is a compilation of all that is relevant about credit card debt loan.
Benefits
- Credit card consolidation companies offer lower interest rates for an extended term period.
Drawbacks
- Even though the repayment terms are longer, a person might stay in debt for a longer period with credit card debt being consolidated, sometimes for a lifetime.
- Even though the monthly payment is lower, the total payment might be much higher than the principal amount.
- In case of secured loan consolidation, asset forfeiture risk is higher on non-payment of dues.
- In the case of an unsecured consolidation, the interest rates will be significantly higher.
- Bad Credit Score can increase consolidation interest rates for Credit Cards/Loans.
Best Credit Card Consolidation Companies
There are many big companies which will help you consolidate your credit cards. The best ten companies are :
- New Leaf Financial
- ResuceOne Financial
- Clear Advantage One
- Accredited Debt Relief
- Brite Solutions, Inc.
- DebtHelp,Inc
- National Debt Relief
- Pacific Debt, Inc.
- Timberline Financial
- Freedom Debt Relief
Warnings/Precautions
- Though, single monthly payments give relief from the several payments it is important to have discipline in money behavior.
- Indiscipline might lead back to where it started all over again.
- Credit Card/Loan consolidation must not be mistaken/interchanged with Credit Card Debt Settlement or Credit Card Debt Elimination.
- It is important to distinguish between the real and fraudulent debt consolidation companies.
- Credit Card is topping the list in the complaints from the consumer to the Federal Trade Commission(FTC).
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