Pros And Cons Of Consolidation Credit Card Debt Loans
If you are carrying multiple credit cards, then you might have considered credit card debt consolidation. It is a process by which multiple credit card payments can be done by one single monthly payment. It certainly is a humongous saving in one’s resource in terms of time, effort and interest rates etc., Here is a compilation of all that is relevant about credit card debt loan.
Benefits
- Credit card consolidation companies offer lower interest rates for an extended term period.
- With a secured consolidation of credit cards, the rates of interest might be lower.
- With an unsecured credit card debt consolidation, there is no risk of asset forfeiture.
Drawbacks
- Even though the repayment terms are longer, a person might stay in debt for a longer period with credit card debt being consolidated, sometimes for a lifetime.
- Even though the monthly payment is lower, the total payment might be much higher than the principal amount.
- In case of secured loan consolidation, asset forfeiture risk is higher on non-payment of dues.
- In the case of an unsecured consolidation, the interest rates will be significantly higher.
Best Credit Card Consolidation Companies
There are many big companies which will help you consolidate your credit cards. The best ten companies are :
- New Leaf Financial
- ResuceOne Financial
- Clear Advantage One
- Accredited Debt Relief
- Brite Solutions, Inc.
- DebtHelp,Inc
- National Debt Relief
- Pacific Debt, Inc.
- Timberline Financial
- Freedom Debt Relief
Warnings/Precautions
- Though, single monthly payments give relief from the several payments it is important to have discipline in money behavior.
- Indiscipline might lead back to where it started all over again.
- Credit Card/Loan consolidation must not be mistaken/interchanged with Credit Card Debt Settlement or Credit Card Debt Elimination.
- It is important to distinguish between the real and fraudulent debt consolidation companies.
- Credit Card is topping the list in the complaints from the consumer to the Federal Trade Commission(FTC).
Disclaimer:
The content provided on our blog site traverses numerous categories, offering readers valuable and practical information. Readers can use the editorial team’s research and data to gain more insights into their topics of interest. However, they are requested not to treat the articles as conclusive. The website team cannot be held responsible for differences in data or inaccuracies found across other platforms. Please also note that the site might also miss out on various schemes and offers available that the readers may find more beneficial than the ones we cover.
