How To Consolidate Credit Card Debt San Jose CA

Consolidating credit card debt into one easily manageable payment with a lower interest rate makes sense for many cardholders.

Cardholders should first examine their spending habits. Are they likely to run up high levels of credit card debt again? If so, it might be wiser to work with a financial counselor who can address their unhealthy spending habits.
 

Going alone

It is possible for cardholders to consolidate on their own, simply by moving all their existing credit card balances onto one card with a lower interest rate. The benefits of such a move are simple: The lower interest rate will help consumers catch up to their debt more quickly, while having all their debt on one card makes managing payments easier. But cardholders should move cautiously. Many credit cards feature low interest rates for a short introductory period. Cardholders must make sure they will either pay off their debt before the rate adjusts or the new rate is still significantly lower than the interest on their other credit card bills.

Going with a professional

There is an entire industry of debt counselors waiting to help consumers consolidate their debt. But before cardholders sign up with any of them, first contact the National Foundation for Credit Counseling. This is a non-profit organization dedicated to helping consumers manage, reduce and eventually erase their debt, including debt racked up on credit cards. Cardholders can visit the organization’s Web site at www.nfcc.org or call 800-388-2227 to locate an approved debt-counseling organization in their area. By going through the foundation, consumers can avoid the disreputable debt-consolidation companies in the business.