What is Credit Card Debt Consolidation?

There are ads on TV and pop-ups and sidebar ads all over the Internet, all touting "debt consolidation." Okay, they all claim it's a great benefit for getting your debts, especially credit card debt, under control. But what is it exactly?

Funny you should ask.

Can You Consolidate Your Own Credit Card Debts?

To many people, credit card debt consolidation means when you move the balances from your high interest credit cards onto a single card with a lower interest rate. For example, if you have about $1000 on each of your credit cards that have interest rates between 16% and 29% and you move those balances onto a third card which carries a 10% interest rate, the money you save would allow you to begin paying down the principal on all your credit card debt! That's the typical way that the average credit card consumer "consolidates" debt for themselves. Sounds pretty good, doesn't it?Well, there are drawbacks, like introductory low rates for transfers that expire, and so on.

Another do-it-yourself approach if you are a homeowner, however, is to borrow against the equity you have accrued in your house. With a low-interest equity loan, you pay off all of your credit cards, and then make a single lower consolidation loan each month, with a likely much lower payment because it will be stretched out over a long term, much like a mortgage. In fact, these consolidation loans are sometimes called second mortgages. But as they imply, these loans cannibalize the equity in your home.

Why Not Ask a Professional!

Debt consolidation by professional not-for-profits and other debt consolidator businesses like CreditCardDebtRegulators.com is a process by which they act as your representative to negotiate with all of your creditors to get the lowest monthly payment while you work to pay on all of your credit card accounts. Typically, the debtor - that's you - makes one much lower monthly payment to the debt consolidation specialist, which they then disburse to your creditors.

Although creditors may be getting smaller payments, they will be on-time payments, and most creditors appreciate that. They also appreciate debt consolidation programs because they show that people are trying to repay their credit card debts in good faith. And as a result, most creditors are more willing to extend terms to these clients in hopes of avoiding turning the debt over to collections, or see that debt written off due to a consumer bankruptcy.

Why Credit Card Debt Consolidation?

We hinted at it above: lower payments which allow you to get a handle on the whole nut that you owe those credit card companies. If you're like most people who are paying the monthly minimums, it will take a dozen or more years for you to pay off those balances! And by the time you do, you will have paid several times the principal in interest. Wow! Think of how different life and your standard of living would be if you could get that financial monkey off your back sooner? Well, it is possible with CreditCardDebtRegulators.com

If you haven't heard of CreditCardDebtRegulators.com, then you are in for a treat. And you just might clear up your credit card debt many times faster than you otherwise could have through your efforts alone. And that sounds like some help we all could use.