Free Credit Card Debt Consolidation
Our philisophy for managing money has changed. Free Credit card debt consolidation and dealing strictly in cash are two of the new the most common changes that people are making. If you are looking for a completely free method of repaying your debt, you are going to have to do it on your own.
A debt consolidation loan will require you to pay closing costs, but you may be able to have them added to your loan. Many people go further in debt when they used debt to payoff debt. Just about all debt consolidation loans will require your home be used as collareral. Defaulting on the loan can lead fo foreclosure proceedings. If you look at the recent economy, taking out a home equity loan a few years ago may have put you upside down in your home loan. This is not a comfortable position.
A debt settlement company will charge you based on the amount of money they are able to save you on your credit card balance. The fee for this can vary from 15%-25%. So, if they save you $2,000, you will be paying from $300-$500 for this service with a net savings of $1,500-$1,700. There are disadvantages. You will have to pay taxes on that same amount and this transaction will not be reported favorably on your credit.
Credit counseling service is another option you have and for most people that want help managing their debt this alternative is best. In most cases, you will see your interest rates be reduced to 10% or lower. An interest rate reduction can be a big saver of time and money. Just use any debt calculator and you will be astounded at what you will save with and interest rate reduction. The cost of this service normaly varies from $30-$50 a month. One of the big advantages is making only monthly payment to make all of your credit card payments.
Although these are not free credit card debt consolidation options, they are going to cost you less than what you are paying now. Some debt relief methods are better than others and not all will work for all situations. It will depend on your personal debt situation which debt relief solution will work best for you.
