Are you considering getting credit cards? If you’ve been receiving bills on ebay, Sotheby’s auction house, antiques and your choice of any store, then you don’t need to become enamored by the thought of looking for a loan. Credit cards are a very convenient instrument and you don’t need to be in debt to make it work.
In studying for a credit card debt elimination plan, a few key considerations need to be taken into account:
1. If possible, you must have at least two or three credit cards.
For example, if you’re going to take out one or two hundred credit cards, you need at least two hundred.
2. Do not, ever, spend more than you can afford to pay back each month.
If you continue to charge more than you can afford to pay back, you would soon realize that you’re in trouble.
3. If you ever incur an emergency, don’t pay the balance in full each month.
If you can’t pay your balance in full every month for 12 months, it’s not a good financial decision.
If not, get help now from other creditors.
4. Do not go into debt by applying for any new credit!
To get the most out of any credit card, you need to be in trouble first. You need to remember that many credit cards are NOT programs for financial freedom. You can only pay what you owe. Continue using the cards for the rest of your life. There is no way your credit card debt will go down until you get out from under this trap!
This is why two steps are required in order to eliminate bankruptcies, judgments, etc. You can use any credit card to provide free legal assistance to your creditors. No credit card is perfect, but it is a step in the right direction.
To get out of debt simply go to your creditors and explain your situation to them. They will listen to you and maybe even ask you to pay more than the minimum payment needed to have any current debt eliminated.
How To Consolidate Debt Using Your Credit Cards
Debt consolidation through your credit cards is a method of clearing your credit card balance and can save you money. With this article, we briefly looked at how to utilize your credit card to consolidate your debt and gave students tips for taking care of your money problems.
With a debt consolidation credit card, you apply your combined total of all of your credit card balances. Depending on the interest rates, the consolidation could take as few as 6 to 12 months.
This may sound small to begin with but your consolidation loan will become the second line of credit to help pay off this outstanding balance. If you pay off most of your balances each month, your total debt will equal the first loan balance totaling the loan and be between 30% and 50% of the total monthly income on your current income. Some debt consolidation debt consolidation loans might also give you a lump sum of between $20 and $50,000 if you consolidate that amount down to about $20,000. Note that as your debt declines, you will also need to start cutting back on other expenses such as overtime or other basic living expenses. This will help build the debt back up in a way where you can manage it now.
By paying off your debt you will be able to have a monthly repayment schedule that can be easier to keep track of with easier access to your credit card statements!
The only requirement on good standing is you must be age 62 or older.
Debt consolidation is one of the hottest topics right now and many people fail to see how effective this method really is. Many of the techniques listed are usually used by those in debt counseling programs to convince people to consolidate loans during the early years of life. Some of the techniques include:
‘ Consolidate loans through joint accounts and leave the credit card lines open
‘ Give credit to someone who has less than perfect credit
The key here is that you make sure you eliminate as many loans and credit lines as possible. This includes any that are not good enough to consolidate. Just because they are taking too long to do this it does not mean that you should go ahead and take their loan as well. Many people do not work and can accrue debt even if they are working.