A Few Ways To Get Unsecured Credit Card Debt Consolidation
The idea behind unsecured credit card debt consolidation is that you take all of your credit card debt and consolidate to one payment in a way that does not require for you to present collateral of any kind. The concept of unsecured credit card debt consolidation is great but there are drawbacks and things to watch for with unsecured credit card debt consolidation and if you are not careful you can wind up in a worse situation than before you did the unsecured credit card debt consolidation. So here are just a few ways you can do unsecured credit card debt consolidation and the things you should keep an eye on when doing it.
Balance Transfer To A New Card
You may get offers like this in the mail all the time and they really are not a bad offer except for the fact that you are taking on yet another credit card to do this. This way of unsecured credit card debt consolidation will offer you something like a book of checks that you can write to other credit card companies and consolidate that debt under your new card. To make it more attractive the new credit card company will usually offer 0% interest on all transferred balances which is a great help. If you can avoid using that new card then you just did a great thing but if you start using that new card then you just added to your debt while simultaneously reducing it at the same time. Just be careful with this and use it to do unsecured credit card debt consolidation but then cut up the new card and never use it.
Debt Consolidation With A Finance Company
This is the worst way to do this because inevitably the interest rates for this will be astronomical and probably pushing 25% a year interest. That is probably more than you were paying on any of the credit card you are paying off and they way they do it is by combining all the principle you owe on cards and then spreading it out over a period of at least 10 years. A ten year loan at 25% to pay off credit card debt is probably the worse kind of unsecured credit card debt consolidation there is. You are better off with the credit card consolidation deal mentioned previously than doing this method.
Credit Unions
Avoid banks at all costs because it is banks that keep running up the interest rates on you in the first place. If you are not part of a credit union then join one and talk to them about unsecured credit card debt consolidation. The results you get by taking the time to work with a credit union will far surpass anything a bank could ever do for you and will more than likely be a first step to putting you on the path back to where you financially need to be.
