A Win-Win Situation: Free Credit Card Debt Consolidation
The Dilemma
It is common practice nowadays to patronize installment payments for items bought, may it be over the counter or from the internet. However, it can not be helped sometimes that accounts pile up without the buyer noticing how much is to be paid off. A new car would be a nice boost to the self esteem, but the payments and the stress of coping up with monthly dues could prove burdensome, let alone more items to be paid off.
The Solution
Certain companies offer free credit card debt consolidation wherein they help the debtor combine all the existing debts and accounts into one solid debt with a common interest or tax rate. This is ideal for those who have no time to manage all accounts for payment or those who have trouble comprehending multiple payment accounts.
The Trade-off
These free credit card debt consolidation companies will ask for some form of collateral for their security. Usually a home is used for collateral, but there are some companies which still offer free credit card consolidation plans based on the credit profile of the borrower. Nevertheless, the amount that can be borrowed in this manner is significantly lower. It is still a good choice if urgency is a major factor in getting your finances in loans and mortgages in order. The good thing about this is that there is an option for non housing mortgage, provided that the debtor has no owned house.
The Comfort Factor
With a single mortgage or debt account sharing a single tax rate, a person availing of the free credit card consolidation will be saving a significant amount of cost of credit which could have contributed to bankruptcy if left unattended. The concept of free credit card consolidation greatly improves the option of a person instead of declaring bankruptcy. Imagine being able to think of other responsibilities and have the time to actually focus on them just because your finances and payments have been combined into one solid account?
The Precaution
Be reminded though that one should be careful in choosing the company offering free credit card consolidation services. Many of these are illegal and are just after your money. It would be advisable to begin by carefully researching your options and the companies you wish to do business with. Also, you might consider asking friends or relatives who have experienced the same financing program and choose the same company which handled them. Finally, it is always a good measure to keep a good credit record and balance with creditors to be able to have a faster approval with any of these free credit card debt consolidation firms.
