How Do I Find Free Credit Card Debt Consolidation?
Finding free credit card debt consolidation can be accomplished in a couple of different ways. One of the most common ways, especially for those who may have good credit, is simply to wait for an offer from another credit card company. The other way is to seek out a consumer credit counseling service, which can be found in the local phone book. This is an option that may be especially attractive for those with bad credit.
The consumer credit counseling service will often be an intermediary with credit card companies. The service will renegotiate payment terms and interest rates. It will also offer the chance for the borrower to send one check to the service, which will then distribute payments. Though all the accounts would still technically be open, this has the same effect as free credit card debt consolidation in that payments are sent to a central location, and the total amount due each month is usually decreased.
The service is also usually free to the borrower. The fee paid is often directly from the lender, who sees the value in the service helping to protect its investment. The borrower never sends the service a check for providing the service. Thus, from a certain perspective, the service offered is free credit card debt consolidation.
Using a credit card as free credit card debt consolidation is another option that some may choose. When a new credit card account is opened, the borrower may be offered the chance to transfer balances from other credit card accounts. This is often a free service offered so that the new bank can start the new account off with a balance.
The borrower usually gains the most in the way of lower interest rates, especially on the transferred balance. While this may be a good idea, the borrower should understand all terms and conditions before exercising this option. Some credit card companies may offer a lower interest rates only for a short period of time. That could surprise some consumers and lead to difficulty when the higher interest rate kicks in. This is free credit card debt consolidation, in the since that most credit card companies do not charge additional fees for the transfers.
In the end, free credit card debt consolidation may help some who find themselves no longer able to meet their monthly obligations. While there could be some negative remarks placed on one's credit report if going through a credit counseling service, the effect will not be as serious as the marks on accounts that have defaulted. Those using a new credit card to transfer balances will see the old accounts simply marked as paid in full.
Written by Ken Black
