Have you ever been in debt because of your own mistakes? Let’s not talking about billion dollar loan from bank. Let’s talk about your credit card! That’s right! How many of us can’t pay back the credit we owe from banks?
What are the advantages of credit card? In this era, there is an increasing number of people using credit card, but they should be very careful when dealing with this type of loan. One thing that makes it so easy to use credit card is that they are so convenient, easy, and safe to use. They might even better than cash, especially if you don’t bring any money with you. It has become requirement to use credit cards in today’s economy.
However, all of those benefits come at a potential cost. Consumers can quickly find themselves in trouble by spending too much and too easy, or because your family member use it without your concern or credit card’s hacked by other people. If you count yourself among this growing majority, there are several options you can use to get yourself back on the right track.
Transfer Your Other Account Balance To Your Credit Card Balance
Credit card companies such as Banks or Credit Union knows what exactly what they’re doing. If you switch a balance to them, they will make money from you.
They will offer attractive rates for balance transfers. It’s better for them to have some of your money than none of it.
At one point, this can be a good way to get your debt under control, but make sure to check the terms and conditions for those transfers, so that you will get the best deal and able to pay off your credit balance sooner with the lowest rate for a couple of months in future.
As you know that this low rate will only applied on specific times, once the time is up, the rate will go up, so you better calculate the numbers first very careful otherwise by the end of your balance transfers terms, you still end up with quite amount of debt.
Ask for Consolidation Loans
Nobody loves having loan for so long because of their incapability to pay, but thinking back, why people ended up having these loans? Because of their lifestyle? Being scammed? or simply because they never try to manage their money. Whatever the reasons are, people are here now with this situation.
Another solution to manage your debt is using debt consolidation loans. Even though, some people think that this is a quick and easy way to get credit card debt help, but it doesn’t work with everybody, because each of us has different to make this solution doesn’t work at all.
This solution requires you to pay several creditors in one payment only plus the lower monthly payment of course. But if you calculate the cost of money, you will find out that that so-called solution actually will cost you much more bigger expenses.
You will have to pay more interest expenses during the life of your loan, in which actually will put you in even more distress, at least not in the short term perspective but in the long term one. Or maybe they will give you with low monthly payment but extending the life of your loan. This tactic resulting in making more money coming out from your pocket once again.
Once again, suggestion for you is to take a look again on the terms and conditions of any of your consolidation loan to make sure that you understand the impact and the consequences of the agreement. Whatever you decision is, knowing what will happen in the future is better than not knowing your financial condition and be shattered by the consequences that you should know before.
Be Brave To Ask For Help From Credit Consultants
It may depends on the amount of your loans. If you are a small business owner, you might want to consult about your solution to these consultants. They can become a quite good option if you are looking for debt help. They will help you to formulate solutions and might also help you to deal directly with your creditors, so you can get the best deal.
As they are very professional with their job, you will have an agreement with them, and they will take payment on the hours of their service to solve your loan. The arrangement will be simple as your consultant will calculate the total monthly amount for the new terms they have been dealing with your creditors (plus a nominal amount for their service).
Every month you need to send them those total amount, and once they receive your money, they will distribute it to your creditors as needed. It’s easy for you so you don’t have to take new loan to pay your old loan, and also it’s very convenient because you don’t have to deal with your creditors directly since it will be a lot of headache to take in.