Consolidating your credit card debt is one of the best moves you can make to save money. This is a crucial step in improving your credit score for the future and insuring you have enough money each month. With the numerous advantages for all cardholders who take advantage of credit card debt consolidation, it is a wonder more people do not do it! There are several reasons you should consolidate your debt.
Why stick with damaged credit and debt you cannot handle when there are simple solutions to save you money today.
The first thing you should do to consolidate your credit card debt is to completely stop using your credit cards. While this seems like the most obvious thing, people often find it difficult not using their cards. The best way to stop your debt from accumulating is to not spend until you have paid your monthly bills. Focus on the important things and set up a budget of your monthly spending. By doing this you have a visual of what your expenses are and just how much money you have left over at the end of each pay check. It seems simple enough, but this step is often skipped by many people.
Next you should consider moving all of your credit card debt onto one card. Do a credit card comparison to choose the card with the lowest interest rate, and consolidate your credit debt onto this one card. One of the most effective means of consolidating your debt at no interest rate is to change to a 0% interest rate card. This cycle is a bit time consuming, but saves hundreds of dollars in interest rates at the end of the day and gives you more time to pay off the debt itself.
Lastly, increase your payments on the card you have consolidated your debt to. By doing this you pay your debts off much faster! If you have managed to move all of your debt to a no interest card, you are paying only on the debt you owe instead of on the interest that debt is accumulating. This is a very important step that can end up saving you time and money in the long run.
Using these three simple steps to consolidate your credit card debt is all you need to do in order to improve your credit and lessen your debt quickly and effectively. Start bettering your future by consolidating your credit card debt today!
Richard Towler is co-founder of SecuredCreditCards4u.com – a US based credit card comparison site focused on secured credit cards to help rebuild credit.