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Consolidate Credit Card Debt:Eliminate Credit Card Debt

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consolidate-credit-card-debt-eliminate-credit-card-debtConsolidating credit card debt or eliminating credit card debt isn't an easy thing to do, especially these days when money is tight for everyone.

Combined household wealth has gone down by trillions of dollars, the value of your investments have gone down, the value of your home as gone down and the unemployment rate is nearing 10 percent.



Trying to eliminate credit card debt with all these financial pressures on you is almost impossible but doable. Credit card debt elimination is possible but you first need to start with a budget that takes into account all your spending. You will be surprised to see how much the little incidentals add up to a big chunk of change.

In the past several years, when one ran up a ton of credit card debt one refinanced their home and payed off their debt. Unfortunately a lot of people repeated the cycle of spending, piling up much debt and using their home to payoff the debt again. Then came the housing bubble bust, making it impossible for many to refinance again.

If you are one of these folks, the best way for you to consolidate credit card debt may be to take out a consolidation loan with a bank or lending institution. If you are behind on your credit card debt, some banks will allow you to pay less to eliminate the entire debt, sometime as low as 50 percent of the total debt. There are also companies and resources that provide debt help.

A consolidation loan can be secured or unsecured, depending on how much you owe and the bank that is giving you the loan. If you decide to go down the path of a debt consolidation loan, the bank or financial institution that is giving you the loan will require you to close the credit card accounts you are using the loan to payoff.

A loan will carry a lower interested rate than your credit cards have, a lot lower if you are in default on your cards. With the lower interest rate, your consolidated payments might be lower than the monthly minimums you were paying on your cards. This might be the best way to consolidate credit card debt or have total debt elimination.

Consolidation loans are a good way of turning around your financial situation and can also improve your credit score. Make the sacrifices now and consolidate your debt, it will be hard but once you have gotten through the ruff period you will feel financially more secure and actually feel like you have control of your financial future. That is as long as you don't repeat the cycle and pile on more credit card debt.

Going forwarded don't open more credit card accounts, a prepaid credit card or a debit card is a good way to control your spending. We have a prepaid credit card and debit card search engine you can use to help you with your search.

Prepaid Credit Card and Debit Card Search Engine

So if you think you are in need of a consolidation loan because of credit card debt do some more research on the subject and be sure to only use reputable companies, there are many companies out there that will take your money and not actually help you at all, putting you further in debt.
 
Author: Brian McKay
June 20th, 2009