Credit Cards

Going Overseas? Know How to Use Your Credit Cards Overseas Safely

December 6, 2014 by penn

It’s a simple fact, traveling is very expensive. No matter whether you’re traveling for business, taking a short break or a longer vacation, everything from accommodation to tickets to sporting events or concerts will cost you money. Most of the money you’ll account for will be given over to merchants and shops at whatever destination you’re visiting – which can often pose some questions, such as is it better to take a lot of cash with you, use traveller’s cheques or take your credit cards overseas with you?

It simply isn’t sensible or workable to travel without any cash at all, and you’d be foolish to not have a ready supply of bank notes for emergency use only, or for if you are visiting somewhere that will not take cards. However, for the most part, taking and using credit cards overseas makes much more economic sense. Firstly, it prevents you having to worry too much about currency conversion rates – with a card you’ll automatically get the lowest rate possible. Credit cards are easy to keep safe – whilst it’s not something we necessarily want to think about, pick pockets operate in every country and it is easier to conceal a card than it is money. In the event your card is stolen, you report it straight away, get the card cancelled and hopefully there will be very little harm done.

Before You Go On Holiday

Check your credit (and debit) cards). A lot of banks and financial institutions might charge you a few for using the card abroad. Typically, it might only be 2-3% of each purchase you make, but it can still work out very costly if you do a lot of shopping or make a lot of purchases while you’re in foreign climes. Therefore, it makes sense if you’re using credit cards overseas to look into getting a No Foreign Transaction Fee credit and/or debit card that will protect you from such penalties.

When you get your new card, or if you’re continuing to use your regular card, make sure that well before you travel you contact your card provider to let them know when and where you’re travelling to. This is a must for two reasons.

1.) You’re less likely to have your card suspended if your issuer suspects there have been suspicious transactions made on your card in a foreign country

2.) If you’re stranded or stuck and you need to contact your card provider while you’re away, it makes it easier to do so free of charge, and not to incur any extra costs.

When You Arrive At Your Destination

Make sure you try and avoid a sneaky trick called dynamic currency conversion, when using your credit cards overseas, which many merchants abroad try to take advantage of. You might be offered good and services which the merchant offers to convert to US dollars in price for you, seemingly to be helpful, however, they often do this at a higher and not particularly competitive exchange rate meaning you can end up paying more. Although it might seem like a hassle it is sometimes better to only pay for goods that are displayed in the local currency and refuse to sign any checks that are not expressed in such a way.

In the USA, technology in terms of credit and debit cards is still a little way behind Europe, where things like Chip and Pin are now the norm. This means that using credit cards overseas can be slightly more problematic as the USA still uses the less secure magnetic stripe system which is easier to commit fraud on. You’ll still be able to use your card in foreign countries, but some merchants will demand an extra form of identity if you’re paying for goods, so make sure you always have your passport to hand as further proof of who you are.

Be Safe and Savvy but Still Enjoy Your Trip

All of this might sound worrying, or designed to create stress in a situation that should be enjoyable, but so long as you’re safe and savvy and know what you’re doing there’s no reason it should cause any extra hassle or worry. As long as you take into account the hints and tips in this article, you really shouldn’t have any problems with using your credit cards overseas. Make sure you:

1.) Try and get hold of a No Foreign Transaction Fee Credit Card

2.) Notify your credit card company when you travel

3.) Avoid buying goods for which the costs aren’t expressed in the local currency

4.) Check your statements thoroughly on return

Then you’ll more than likely find that you encounter no problems at all and that it is relatively easy to make purchases in foreign countries whether you’re simply on vacation, taking a working trip or a short break to see a concert or sporting event.

Top Reasons for Credit Card Denial

November 17, 2014 by penn

It could be a very embarrassing experience to try to apply for a credit card only to be told that your application had been denied. You may be left wondering what factors are included in determining your eligibility to get a new credit card. Do not be too alarmed because you are not the only one who has been a victim of credit application denial. In fact, a reported 7% of United States citizens have had their credit application denied in the past year. And, according to the trend, that percentage will continue to increase each year. But still, you may be wondering why you were denied. Keep reading for the 10 most common reasons for credit card denial.

1. Did you complete your application?

It may be a silly question to ask, but a lot of individuals get denied a credit card because their application was not completed. If this is the reason for credit card denial, you will typically receive a notice of it being incomplete or a notice that further action must be taken. Until then, the application will be denied.

2. How many credit cards do you already have?

You may be thinking that it is no one’s business how many credit cards you have. It you are thinking that, you are wrong. If a credit card company sees that you have more than one card, they could think twice about approving you for their card. Just put yourself in their shoes—if a person already owes other people money, how likely are you to let them borrow your money too? This reason for credit card denial is the same reason you may be quick to deny someone the ability to borrow money from you if he or she already owe others.

3. Do you have steady employment?

Having a steady job is a huge factor in determining your eligibility to getting a credit card. So, another reason for credit card denial is because you do not have a steady job or have never had a steady job. No credit card company is going to issue you a line of credit if you have no means to pay it back. You must have a job as proof of the ability to make payments when they are due.

4. Do you have proof of employment?

Saying that you have a job is not enough to get approved for a credit card. Another reason for credit card denial is because of the lack of proof that you have income. Proof of income can come in the form of a check stub or tax documentation. Sometimes, credit card companies allow you just to tell them if you are working or not. Others need proof of income. Your application will specify what documentation is needed to complete the application.

5. Are you old enough?

Like everything else in the world, there is a certain age you must be before applying for your own credit card. Typically, it is required that you be at least 18 years of age when applying. So, another reason for credit card denial could be because you were not old enough to apply for one. In order for a minor to get a credit card, a parent or guardian must place the minor on the card as an authorized user.

6. Have your creditors given up on you?

Another reason for credit card denial is because your credit report has one or more charge-offs on it. A charge-off is when the lender has stopped expecting you to make a payment on the account. This stays on your credit for many years and has a negative impact on your credit score.

7. How good is your public record?

If you public record has bankruptcies, taxes that are unpaid, or court orders to pay money, this could be another reason for credit card denial. Public records are full of information that can affect your credit, in turn affecting the ability to get a credit card.

8. How much is your income?

Another reason for credit card denial is your low income or lack of income. If you do not have enough funds coming in to manage credit card payments, you will be denied very quickly.

9. What is your credit utilization ratio?

If you credit utilization ratio is higher than 30%, this could be another reason for credit card denial. For a good ratio, pay down your previous debts.

10. How many applications have you completed?

If creditors see that you are constantly applying for cards, this could be another reason for credit card denial. It is especially bad if every one of your applications is denied.

It may be an aggravating thing to get your credit card application denied, but the reality is that it happens, and it tends to happen more often than you may think. However, knowing the 10 common reasons for credit card denial will give you an understanding of what can be done to avoid any further denials. Do what is necessary to get your credit back in good standings so that when you apply for your next credit card, instead of being denied, you will be approved.

Taking on Financial Responsibility

November 7, 2014 by penn

Financial responsibility entails a number of specific qualities that an individual must have in order to be successful at the task. It is definitely a term that some people use lightly, while others take it completely seriously. Financial responsibility is essentially the key to being financially stable and staying out of financial trouble, like debt or ending up with no money at all. A key to being financially responsible is realizing what financial obligations must be meet for you to be able to live comfortably, monitoring your spending habits, and saving money when and where it is necessary to do so. Keep reading for more information on financial responsibility.

The Real Deal on Credit Cards

Yes, it is very true that credit cards can be life saver when it comes to needing emergency money to take care of an urgent matter. However, credit cards can be a dangerous tool when payments cannot be made on time and interest continues to increase. An important part of financial responsibility is to be able to take care of financial obligations whenever they come up, and a credit card is a good way to be able to do that. But with the ownership of a credit card, you must be able to keep up with payments to stop yourself from going into credit card debt. This means staying under your credit card limit, using the card only when necessary, and making payments according to your credit card terms. Understand that with the use of a credit card, you will be required to pay back more than what you initially spent. If you must apply for a credit card, you must be willing to take on the full financial responsibility involved in owning one.

Borrowing within Your Means

For some, it does not take much effort to stop themselves from borrowing. In some cases, it is appropriate and necessary to purchase an item under the circumstance of borrowing. When taking part in financial responsibility, it is important to determine which purchases should be bought by borrowing money, and what purchases do not require borrowing money. It also requires borrowing money on a responsible budget. For example, it is very common to purchase homes using a loan. But if you do not need to purchase a huge home to accommodate a family of 5 and you only need to house 2 people, there is no need to borrow the amount of money needed to cover such a big home. Taking out loans requires a lot of financial responsibility and you will be required to pay back more than you initially borrowed. If you are not able to borrow within your own means, it is highly recommended that you stay away from borrowing money.

Saving for Emergency Spending

There is nothing worse than a financial emergency arising and having no funds to take care of it. A major part of having financial responsibility is the ability to save money for extra spending and emergency spending. Saving can include a variety of methods. Some of these methods include opening a savings account to have funds automatically or manually deposited, investing in businesses or stocks, or even something as simple as starting a savings jar at home. However you decide to start a savings fund, keep up with it by taking a small percentage of your income each week or month. Deciding to save by investing will require strategic planning and possibly financial advice.

The Art of Budgeting

Some individuals may deem it too difficult to budget, therefore deciding not to do it. Budgeting goes hand-in-hand with saving and should be done as an important part of having financial responsibility. Budgeting involves spending money only when necessary and being able to save what has not been spent for emergency purposes. Budgeting also means knowing your spending limits regardless of what those around you are doing with their money. Regardless of how much money you have at one given time, if you are not able to afford the cruise trip that your coworkers are planning during the summer, do not risk your financial stability by going on the trip. If buying the brand new phone that has just hit the store requires you skipping your credit card bill for the month, do not buy it. Budgeting requires hard work and sacrifice, but the ending rewards are so much greater than ending up in financial jeopardy.

A big part of having financial responsibility is recognizing what you need to do for yourself to be financially stable. That means that you have to determine what purchases are necessary and what purchases will just be a complete waste of money. It also means taking financial help and using them wisely, like credit cards and monetary loans. Being financially stable requires a lot of financial responsibility, but once you get the hang of budgeting, saving, and spending only when necessary, you will find it more comfortable being a part of the financially-stable club.

Smart Tips to Use Your Credit Cards While Traveling

May 25, 2014 by penn

It’s summer – school day are coming to a close, and summer vacations are getting ready to start. No matter where or how you’re planning to travel this year, you’re probably going to use your credit cards while traveling. Here’s some smart travel tips when using cards.

Notify your Credit Card Companies

Before departing, call all your credit card companies and notify them of your destination and dates of travel. Identity theft is rampant these days and companies have become hyper-vigilant. If you use your credit cards while traveling to an unusual location, the company may phone you to authorize payment or worse, completely freeze your account and prevent you from using it. Most of the major credit card companies allow you to notify them online as well. Call the company or log in to their website before you go and save yourself some serious headaches and embarrassment.

Protect Yourself from Loss or Theft

When using your credit cards while traveling, you need to take some extra precautions to protect your accounts from loss or theft. A stolen purse or misplaced wallet can be devastating while away from home. Follow these tips to make sure your trip isn’t interrupted by the loss of your credit cards while traveling.

Keep a list of the phone numbers to each credit card company separate from your wallet or purse. Consider giving a copy to friends or family that won’t be traveling with you.
In the event of loss or theft, call and notify your card company immediately.
Take two different cards with you. One functions as your backup card should you lose the other.
If you have the option of having a credit card with a chip, take advantage of it. These “cyber chips” are embedded into the card and are designed to slow down hackers. They are standard issue in European countries, but many US companies don’t use them. There may be some overseas vendors that will reject a non-chipped card.

Take Advantage of the Perks

According to expert travel advisors, most people are not aware of some great perks that are offered with their credit accounts. Many of the major companies attach member benefits to their cards. These benefits can be extremely convenient and useful when using credit cards while traveling.

Referral Services. If you are in need of a physician or attorney during an overseas trip, many credit card companies offer no-cost referral services. You will still be responsible for the fees for the professional services.
Hotel Upgrades. Dependent on the hotel and the card company, you may be eligible for a room upgrade.
Luggage Coverage. You may have up to $500 coverage if your luggage is damaged or lost during your flight. Many of the US based airlines cover a certain amount, but often exclude cash or electronics. It may not cover the full value, but it may replace some of your belongings.
Delayed Flight. If you used your credit card to book your flight, you may be eligible for compensation for delayed or cancelled flights.
Rental Car Coverage. One of the biggest benefits is coverage for rental car damage. This is especially helpful when traveling overseas, where standard US auto insurance isn’t effective.

Take some time before your trip to familiarize yourself with the benefits of your credit account. Read your account agreement, check the website or call the company. You may get some extra benefits using your credit card while traveling.

Save on Fees

When using your credit cards while traveling to foreign soil, you may encounter currency conversion fees, even if paying in US dollars. These fees can tag on an extra one to three percent to your purchases. Some of the major companies have eliminated these completely, but it’s smart to find out before you go. Some other fees to be aware of:

ATM Fees. These can go as high as five dollars for each transaction. Know which machines your company uses or use a debit card which usually carry lower fees. Make one larger cash withdrawal, rather than several small transactions to save on repeated charges.
Currency Exchanges. Experts recommend avoiding offices or kiosks that offer currency exchange services. Their fees are generally higher that those charged by the card companies.

Check Before You Leave

Before leaving home or if you are on an extended trip, pay off your balance or set up automatic payments for your credit card bill. Doing this can help you avoid late fees or penalties. Know the credit limits on your credit cards while traveling to avoid transaction denial or expensive fees. Be aware of the limits and either limit your spending or request a credit limit increase to cover anticipated expenditures during your travels.

Following these simple and easy guidelines can make using your credit cards while traveling hassle-free, and help you avoid unpleasant surprises during your vacation or on your return home.

All about the Best Credit Cards

May 7, 2014 by penn

When you are shopping around for a new credit card, it is always to know as much as you can about credit cards so that you can ensure you are getting the best possible deal for yourself. There are hundreds of types of credit cards, so how can you be sure which the best fit for your life is? Would you do better with a reward program card, or maybe one with low interest? When you compile the different types of cards together along with our five tips on how to pick the best fit, you will feel more confident after you have made your newest financial decision.

Comparison Websites

The internet is a vast well known world that has a whole lot of information, especially customer reviews and critics who are sure to get their words out to the public somehow. There is one special tool that was created by world renowned search engine Google, which helps show the different types of credit cards side by side, showing interest rates, rewards, and other major factors that need to be brought into your decisions. Google is not the only website, so if you cannot find what you are looking for, do not give up… keep researching until you have the information that you need about credit cards.

Protection?

Different types of cards come to you with different types of protection, whether you paid extra or it is simply a standard feature with your company. You could have theft protection, extended warranties, and non-delivery protection. These are all very important in their ways, and should be taken into consideration when you are researching for your best fit credit card. However, it is okay to be picky on what protections you will receive; look for some that will fit your life style. For example: if you travel quite often for work or leisure, you might find it accommodating to purchase a credit card that comes to you with travel insurance. Even though this may sound too good to be true, you should always read the fine print included in the information to see exactly what you are getting in to with this credit card, and what exactly the card offer entails.

Freebies Are Not Worth It

We know that free t-shirt or pen can be very enticing, but more than likely when a company has to distract you with free items, it is not because they value you as a customer; it is because they are moving your attention to the good so you do not realize the bad. Becoming sidetracked by free stuff is just another way of credit suicide.

Unless You Have Zero Debt, Be Careful:

When looking at rewards cards, they can seem so beneficial and like the right type of card for you. Wrong. You may really benefit from this offer from this card; or you may sink down into debt with high interest rates. When you sign up for some type of reward plan, it is best to do it when you have no debt hightailing behind you, or you will face severely high interest rates. When you have debt, you need to know all about interest rates and credit cards to ensure you will not increase your debt over time.

Negotiate

Even if it is written in black and white in front of your face, it can probably be tweaked to better accommodate your needs, or even negotiated to better enhance your finances. If you have always had great credit and little to no debt, the company may be willing to work with you on your payments and interest rates. It never hurts to ask, and you will never know until you try. The more you know about credit cards, the more they will respect you. You just might score the credit card deal of a lifetime when you reach out to the company and ask about how much leeway they will give you for being such a good and prompt customer over the past years.

There is nothing wrong with signing up for a credit card that has extra rewards, or even that has a company that is giving you freebies, that is great if the terms are correct and you understand what you are signing up for. No one likes to be hit at the end of the month with hidden fees and confusion on how in the world they owe that much. Debt is a big factor that comes into play when deciphering between credit cards. Create a long term plan to pay off your debt so this will no longer be holding you back when you are looking to get lower interest rates and payments. Always be careful when dealing with companies and ensure you know as much as you can about credit cards to make sure you are getting a great deal for your lifestyle.

Reaping Credit Card Benefits

April 2, 2014 by penn

Every month a new credit card bill arrives in the mail, yet you dread going to the mailbox. You may find yourself wondering why you don’t just cut the little piece of plastic in half and all your troubles will disappear. Unfortunately establishing credit is an important part of adulthood, without good credit, it is hard to purchase important things like a car or a house.

However, there is a light at the end of the credit card tunnel that many feel they will never see. This light is called the credit card benefit.

Unknown Credit Card Benefits

What are these benefits? We have a few things below listed that you may want to keep in mind when choosing your next credit card. Below are the top three reasons to have a credit card and be aware of these benefits.

· Fraud

As you know many know accounts come with fraud protection. This valuable benefit protects the card holder from being held liable for any unauthorized charges should your card be lost or stolen.

· Card Replacement

This credit card benefit is probably the most necessary one to retain. If you are on vacation or a business trip and have no cash, but have lost your card, most companies offer emergency cash or they can send you a new one within a 24 hour period.

· Rewards

Many credit card companies offer reward programs for the card holder to take advantage of every time they use their card. This credit card benefit is a valuable tool when it comes to credit card usage. These rewards can get you many discounts on travel, vacation, air fare, hotels, etc. You may even get free stuff, just for using the card. These rewards may sound appealing so choose a credit card that has the best deal for you.

· Returns and refunds

These credit card benefits are a hidden gem and one many are unaware of is possible. For instance, when you make a purchase at one store then find the same merchandise at a cheaper price at a different store, your creditor can refund the difference in the two prices, but beware because their may be stipulations involved. Another perk to having a credit card is the replacement of something that is damaged or stolen, once you have purchased it. Some not all credit card companies will replace the item as long it is within a certain amount of time. If you happen to wait too long to return something your credit card company may offer a longer return of 30 to 60 days.

Sidestepping the Dangers of Using a Credit Card

Despite the credit card benefits that are offered through credit companies, utilizing them will be fruitless if you act irresponsible with your credit card. Keep yourself out of credit card debt by following these simple steps

· Living Beyond Your Means

Credit card debt is still a driving force in many American households today. The main reason is people are living beyond their means. A credit card is easily used as a weapon to gain a lot of material items as well as impressing your friends. Don’t bite off more than you can chew.

· Budget Yourself

Almost all credit cards come with a limit. The limit is the line of credit the company has given you to spend for example Capital One may give you a limit of $500 this means you only have that much to spend. A word of caution do not spend the whole $500 because you have to pay it back with interest. Always include your credit card bill with your monthly budget so you know exactly where you stand financially.

· Pay the Bill in Full

Once the bill comes in the mail pay it in full, this will illuminate the accruing interest and finance charges involved with credit cards. If it is possible only spend what you can pay off.

· Request a Lower Interest Rate

This is the final credit card benefit people are unaware of, credit card companies can raise or lower your interest rate whenever they want, but they must give you notice first. A few things will happen as a result, first they will try to convince you to accept the new rate, second they will agree to not change a thing, third is both parties will come to an agreement to part ways and close the account then settle the remaining balance.

Everything that has been mentioned so far are just suggestions and guidelines to having a credit card. If the credit card is used responsibly these benefits can work in your favor. Use your common sense and try not to spend more than you can afford, so you can reap the benefits and not put yourself in a financial hole. Final thought no matter how much you want to make an impression, it is your credit rating that will be affected.

How Do I Consolidate My Credit Cards?

February 7, 2014 by penn

When you have several credit cards with balances it leads to further trouble because you have to pay off all those separate payments and interests which if not dealt efficiently can pile on to an enormous amount of debt and stress. You can adopt a debt snowball or debt avalanche approach; though they are the most commonly used techniques to get rid of the debt but it will still feel as if payments and higher interest rates are leaving you and your resources drained.

If you are one of the millions of Americans going through a rough patch in your life due to serious financial troubles because of debt then what you need are consolidated credit solutions. In order to manage your credit card debt and take the debt off your neck you need to consolidate your credit cards.

How Does Credit Card Consolidation Work?

Credit consolidate solutions help you to take control of your debt and manage your finances more efficiently. These solutions provide you with right financial strategies and resources so that you can pay off your debt successfully and quickly and secure your future.

With credit card debt consolidation you consolidate all your bills into one payment. You take all your balances and put them in one place which means you have to deal with only one payment and its interest. This can allow you to manage your debt efficiently in no time because you are not dividing your payments. When credit card debt causes problems for your budget, you need to find a way to eliminate the debt quickly to avoid damage to your credit and bankruptcy. To consolidate your credit cards, there are three main options to consider:

Get a debt consolidation loan:

You can acquire a debt consolidation loan; you can combine all your existing debt and credit card loans into one regular payment. You can take a larger loan from a reputable and trustworthy company with which you can pay off your credit card balances. Now you to worry about only one payment and one interest which will help your finances and efficiency of your payments.

Balance transfers:

You can use a credit card balance transfer to consolidate your credit card debt (and maybe even get a 0% APR for a short period of time) or you can get personal loan or a home equity loan.

Debt consolidation companies:

It is advisable to be cautious when dealing with debt consolidation companies as they might charge you excessive fees while lending you the loan and also make sure the company you are dealing with is reputable. Some companies will advertise as debt consolidation” or “consolidation solutions” which is more like a management plan for debt payment or a debt settlement.

Consolidating your credit card is all about making situation more manageable and stress free. With the right guidance and approach you can reduce what you are paying overtime and will also help you in paying off you debt swiftly and diligently. Living a debt-free life is a distinct possibility. All you need is discipline and a solid financial plan.

Peer to Peer Consolidation Loans

One way of consolidation is by going to a peer-to-peer lender like Prosper or LendingClub. These lenders help individuals by matching up the individuals who plan to invest and earn from an investment with people needing low cost consolidation loans. The positive aspect of this type of an arrangement is that the interest rate on peer to peer loans is low as compare to the loan you get from a bank.

You can learn more about peer-to-peer consolidation loans and other types of debt consolidation, by visiting Debt Consolidation resource center.

Working Out Your Own Plan

If you’re in search of other available possibilities other than debt consolidation for your credit cards you can put together an automated plan that feels like debt consolidation if it’s not. There are tools that can help you to find solutions for your debt problem. They adopt a more individualistic approach by helping you create a personalized strategy to assist you in pay off you debt quicker. You can use these tools to pay off your debt without managing the payment on your own. The advantage of this situation is you don’t have to acquire a new loan nor worry about the credibility of the companies you are dealing with.

The important thing is that you formulate a manageable plan which will help you to get the debt off your neck in no time while lowering your payment rates at the same time. The only drawback to consolidate your credit card is that you can free up your credit cards again. If you want to live a debt free life you need to change your financial behavior to save yourself from economic troubles.

Credit Card Loan Consolidation Can Be Useful

November 29, 2013 by penn

Credit card loan consolidation is something that you might be considering if you have Visa, American Express, Master Card, or any other credit card debt that is over 10,000. Credit card loan consolidation is where you borrow money that can help you to pay off all of your credit card debt at once. There are several pros and cons when looking into consolidation loans.

The Pros

There are some pros when it comes to credit card loan consolidations.

One great thing about consolidation is that the collection agencies will no longer be pestering you. An individual will receive no more phone calls at all hours of the day, from several different companies at a time.
You will only have one debt. When you have more than one credit card you end up with more than on debt you need to pay on. By getting a consolidation loan, you will combine all the smaller debts into one single debt.
A credit card loan consolidation will allow you to lower your monthly payments. This may seem strange because you are having a larger loan, but if you combine the entire little bill payments into one, the consolidation as a single payment is less.

The best way to understand this is through an example. If you were to have a debt of $15,000 with an annual percentage rate (APR) of 18%, for this particular debt a person will be looking at paying roughly $225 per month. However, if you were to obtain a secured loan (similar to a second mortgage) for the $15,000 that you are in debt. This secured loan should allow you to receive and APR as low as 2.79% for a 10-year period. This would allow you to have only one monthly payment around $114. This is about half of what you were paying previously. This price drop is something that is one of the biggest pros for someone looking into credit card loan consolidation.

The Cons

As with anything, there are some negative points to a credit card loan consolidation.

The biggest thing that can make you not interested in taking out a consolidation loan is the length of time that you are to be paying back this loan. The average secured loan can be obtained for anywhere from 10 to 30 years. Credit card debts may only take 3 to 4 years to pay off, which is significantly lower of a period.
When you take out a credit card loan consolidation it is very important that you ensure not to gain anymore debt while paying off all your debts. If you put yourself into new debt you can potentially end up far worse off than you were before.
Another downer to a credit card loan consolidation is the interest rates on the loans you try to obtain. Remember that you are in debt and that is a problem when trying to get a loan at all. It is important to remember that lenders prefer low risk individuals to offer loans to. This is one reason that a secure loan is the best option for low interest. However, without the collateral, you might be paying a higher interest rate. If you try to obtain

Another Option

It is important to remember that a person cannot completely eliminate all of their debts. It can be helpful to work with a company the specialized in helping people to receive a credit card loan consolidation. Some debt settlement programs can help you to reduce and even remove the debt that you owe. This can be beneficial for those that are not sure of the best way to go about eliminating their debt. Some of these debt programs can help a person to remove their debts within 24 to 48 months.

Is it the Best Option?

Several things can help you determine if obtaining a loan consolidation is best for you.

This is a great option if a person is able to take out a secured loan. This means that you have something that is useable as collateral.

In order for an individual to gain the most benefit, they should have many high interest credit cards.

Nothing is all good or all bad. When comparing all the pros and cons of credit card loan consolidation you will see that overall it is a good solution. You want to evaluate your situation and make sure that it is the best option for you. Be sure that when committing to this loan you understand that is long term. It is also something that needs to be financially acceptable. Do not take on higher payments that you are able to afford. Over commitment can cause even more problems than not gaining help at all, be sure to only commit to what is actually doable.